The NOI Is $40,000; There Are $5,000 in Tenant Improvement

Multiple Choice

The NOI is $40,000; there are $5,000 in tenant improvement expenditures paid for by the landlord; there is a $200,000 interest-only loan at 8 percent annual interest; the depreciable cost basis of this residential property is $300,000; the owner's tax bracket is 33 percent. What is the Equity After-Tax Cash Flow (EATCF) ?

A) $14,680
B) $27,800
C) $30,680
D) $35,000