Answer是我做的， 红字是与答案不附的地方，答案是After-tax cash flow Year 3，38，731. Net present value Year 3， 538，721. 请帮我看看那做错了，谢谢！

Using the income approach, the appraised value of the property is 1,975,000(NOI:197,500,market cap rate 10%).

Assume the investor purchases the property for 1,850, 000, putting down 20% cash, and financing the remained with a long-term mortgage at a rate of 10%. The annual payment on the mortgage are 156,997, and the interest portion is fully deductible for income tax purposes. The investor’s marginal income tax rate is 28%, Depreciation per year, using the straight-line method, is estimated to be 45,000 per year. Calculate the after-tax cash flow, net present value.

Answer:

After-tax cash flow

Year 1, interest payment 148.000,

After-tax net income is (197,500-45,000-148,000)*(1-0.28)=3240

after-tax cash flow: 3240+45,000-(156,997-148,000)=39,243

Year 2, interest payment 1,480,000-(156,997-148,000)=1471003

1471003*10%=147100

After-tax net income is (197,500-45,000-147,100)*(1-0.28)=3888

after-tax cash flow: 3888+45,000-(156,997-147,100)=38,991

Year 3, interest payment (1,480,000-8997-9897)*10%=146,111

After-tax net income is (197,500-45,000-146,111)*(1-0.28)=4600

after-tax cash flow: 4600+45,000-(156,997-146,111)=38,714

Net present value

There years forward, the investor plans to sell the building for 1,950,000. The remaining mortgage balance at payoff is 1,450,220, assume the cost of equity is 10% and the net cash flow for the investment are as the flows

Year 1 39,243

Year 2, 38,991

Year 3, 538494 ( 1,950,000-1,450,220+38,714)

The present value of cash flow is (39,243/1.1)+(38,991/1.21)+(538494/1.31)= A

NPV= A-370,000