Current year after-tax cash flow from the property

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A property has $610,000 of annual net operating income. The depreciable basis for the property is $6,000,000, with an annual depreciation rate of 2.564% per year. The owner is paying $475,000 of debt service, of which $325,000 represents interest for the current year. Assume a 37% tax rate on taxable income. What is the current year's after-tax cash flow from the property?

Reference no: EM133109972

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