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Calculate the after-tax cash flow from the sale

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Question - An investor bought a property 3 years ago for Sh, 500,000 of which 20% was cost of land. The building is depreciated on a straight-line basis over 20 years. The investor borrowed Sh. 350,000 at 12% p.a. payable monthly for 19 years. The property can be sold today for Sh. 800,000. The loan outstanding today is Sh. 280,000. The capital gain tax on price appreciation is 20% and 25% on depreciation recapture. Calculate the after-tax cash flow from the sale of the property.

Reference no: EM133173968

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