how answer is B ?

28) Consider the table for an income property that is under evaluation for purchase with a $455.000 loan What would be the equity dividend rate? Year 3 $ 77,875 : 224.755 Year 1 Year 2 $ 72,000 $ 74,880 60,000 60,000 $ 12,000 $ 14,880 NOI DS Cash flow Resale in year 3 Less mortgage balance Total cash flow Present value of cash flow @ 15% 60,000 - 2016 $ 17,875 900,000 -435,000 $ 482,875 $ 317,498 $ 12,000 $ 10,435 $ 14,880 $ 11,251 A) 2.4 percent B) 3.5 percent C) $12,000 D) $317,498 Answer: B Difficulty: 3 Hard Topic: Equity capitalization Accessibility: Keyboard Navigation Gradable: automatic