What is the projected before-tax cash flow

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A lender is willing to provide a loan equal to 80% of a property worth $360,000. The loan will carry an annual interest rate of 7.5% for a term of 20 years. The 7.5% 20-year annual loan payment factor is .09809. The NOI is $40,000 per year. Hint: multiply the property value by the factor to obtain the annual mortgage payment. What is the projected before-tax cash flow?

Reference no: EM132621982

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