Given the Following Information Regarding an Income Producing Property, Determine

Multiple Choice

Given the following information regarding an income producing property, determine the after tax net present value (NPV) . Expected Holding Period: 5 years; 1ˢᵗ year Expected BTCF: $30,656; 2ⁿᵈ year Expected BTCF: $33,329; 3ʳᵈ year Expected BTCF: $36,082; 4ᵗʰ year Expected BTCF: $38,918; 5ᵗʰ year Expected BTCF: $41,839; 1ˢᵗ year Expected Tax Liability: $7,645; 2ⁿᵈ year Expected Tax Liability: $8,658; 3ʳᵈ year Expected Tax Liability: $9,708; 4ᵗʰ year Expected Tax Liability: $10,798; 5ᵗʰ year Expected Tax Liability: $6,951; Estimated Before Tax Equity Reversion at end of year 5: $343,674; Expected Taxes Due on Sale at end of year 5: $32,032; Required equity investment: $241,163; After Tax Opportunity Cost: 11.2%

A) -$40,858
B) -$91,785
C) $40,858
D) $91,785