Question: A property purchased for $ 1 0 0 , 0 0 0 with an NOI of $ 7 , 0 0 0 per 1 0

A property purchased for $100,000 with an NOI of $7,000 per 10 years will be sold for $140,000. Depreciation is $3,000 per year The investor's ordinary income tax rate is 37 percent, the capital gains tax rate is 20 percent, and depreciation recapture is taxed at 25 percent.
What is the present value of the after tax cash flows discounted at a 7 percent after tax discount rate?
$5,220
$1,200
$49,165
$38,770
A property purchased for $100,000 with an NOI of $7,000 per

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