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13
5. Key in depreciable value and press 4.
6. Key in depreciable life and press 5.
7. Key in factor (for declining balance only) and press 6.
8. Key in the Marginal Tax Rate (as a percentage) and press 7.
9. Key in the growth rate in Potential Gross Income ( 0 for no growth) and
press 8.
10. Key in the growth rate in operational cost (0 if no growth) and press
9.
11. Key in the vacancy rate (0 for no vacancy rate) and press 0.
12. Key in the desired depreciation function at line 32 in the program.
13. Press to compute ATCF. The display will pause showing the year
and then will stop with the ATCF for that year. The Y-register contains the
year.
14. Continue pressing to compute successive After-Tax Cash Flows.
Example 1: A triplex was recently purchased for $100,000 with a 30-year
loan at 12.25% and a 20% down payment. Not including a 5% annual
vacancy rate, the potential gross income is $9,900 with an annual growth
rate of 6%. Operating expenses are $3,291.75 with a 2.5% growth rate. The
depreciable value is $75,000 with a projected useful life of $20 years.
Assuming a 125% declining balance depreciation, what are the After-Tax
Cash Flows for the first 10 years if the investors Marginal Tax Rate is 35%?
Keystrokes Display
CLEAR
100000
20
80,000.00 Mortgage amount.
12.25
1.02 Monthly interest rate.
30
360 Mortgage term.
-838.32 Monthly payment.
9900 2
9,900.00 Potential Gross Income.
3291.75 3
3,291.75 1st year operating cost.
75000 4
75,000.00 Depreciable value.
20 5
20.00 Useful life.