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What is the before-tax cash flow to the equity investor

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Reference no: EM131734558

Question: The NOI is $850,000, the debt service is $600,000 of which $550,000 is interest, the depreciation expense is $350,000, and the income tax rate is 35%.

a. What is the before-tax cash flow to the equity investor (EBTCF) if there are no capital improvement expenditures or reversion items this period?

b. What is the after-tax cash flow to the equity investor if the income tax rate is 35%?

Reference no: EM131734558

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