Question: The NOI is USD 1,000,000, the debt service is USD 800,000 of which USD 700,000 is interest, and the depreciation expense is USD 250,000.
[A] Determine the Before-tax Cash Flow to the equity investor [EBTCF] if there are no capital improvement expenditures or reversion items this period?
[B] In the problem above, determine the after-tax cash flow to the equity investor if the income tax rate is 35 percent?