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In: Finance

a) What is the Before Tax Cash Flow? b) What is the After Tax Cash Flow?...

a) What is the Before Tax Cash Flow?

b) What is the After Tax Cash Flow?

Given: Annual Debt Service                            $20,876

            Vacancy & Collection Loss 5%

            Depreciation                                       11,000

            PGI                                                      46,200

            Interest                                               1,700

            Operating Expenses                            18,400

            Marginal Tax Rate                              28%

                        All numbers are annual

If possible, please use a financial calculator and show me how to solve as I need to learn this concept for this class.

Solutions

Expert Solution

Solution.>

I have solved this question in Excel. The formula used are written along with the values. If you still have any doubt, kindly ask in the comment section.

Part a>

Part b>

Note: Give it a thumbs up if it helps! Thanks in advance!

jeff jeffy answered 1 year ago
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