could you show the calculation for each column? 5. Bill invests in...
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could you show the calculation for each column?
5. Bill invests in a real estate investment pool. He can purchase a share of an existing apartment building for $100,000. The projected rental income on the investment is $6,000 per year after expenses. In addition, the projected depreciation he expects to receive on the investment is $3200 year. In year 5, the property is expected to be sold and he will receive $150,000. Bill's marginal tax rate is 25%. Fill in the table below for Bill's expected cash flows - BTCF, depreciation, TI, taxes, and ATCF. (Note- the $150,000 Bill receives in year 5 only means $50,000 in taxable income plus any depreciation recapture - he is not taxed on the return this initial $100,000 investment. For simplicity, assume Bill's capital gains tax is the same as his marginal tax rate.) Year BTCF Taxes ATCF Taxable Income Net Depreciation/ Depreciation recapture 0 1 2 3 4 5
could you show the calculation for each column?

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