Determine the before tax cash flow and the after tax cash, Ask an Expert

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problem: The NOI is USD 1,000,000, the debt service is USD 800,000 of which USD 700,000 is interest, and the depreciation expense is USD 250,000.

[A] Determine the Before-tax Cash Flow to the equity investor [EBTCF] if there are no capital improvement expenditures or reversion items this period?

[B] In the problem above, determine the after-tax cash flow to the equity investor if the income tax rate is 35 percent?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916457

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