Given the Following Information Regarding an Income Producing Property,determine the After

question 2

Multiple Choice

Given the following information regarding an income producing property,determine the after tax net present value (NPV) .Expected Holding Period: 5 years;1^st year Expected BTCF: $30,656;2^nd year Expected BTCF: $33,329;3^rd year Expected BTCF: $36,082;4^th year Expected BTCF: $38,918;5^th year Expected BTCF: $41,839;1^st year Expected Tax Liability: $7,645;2^nd year Expected Tax Liability: $8,658;3^rd year Expected Tax Liability: $9,708;4^th year Expected Tax Liability: $10,798;5^th year Expected Tax Liability: $6,951;Estimated
Before Tax Equity Reversion at end of year 5: $343,674;Expected Taxes Due on Sale at end of year 5: $32,032;Required equity investment: $241,163;After Tax Opportunity Cost: 11.2%

• A)-$40,858
• B)-$91,785
• C)$40,858
• D)$91,785