Question

Assume in a particular year a project has the following financials: NOI of $700,000; Annual Debt Service of $430,000 (of which $400K is Interest and $30K is Principal); Original Loan of $6.2M; 39 yr depreciable life; $8M non-land project cost; $300K land cost; ordinary income tax rate of 28%. Round to nearest $1000

What are the BTCF and ATCF’s for this year?

Answer 1

1	Particulars	Amount
	Net Operating Income	$   7,00,000.00
	Less: Debt Service	$   4,30,000.00
	Before Taxation Cash Flow	$   2,70,000.00
2	Particulars	Amount
	Net Operating Income	$   7,00,000.00
	Less: Interest	$   4,00,000.00
	Depreciation	$   2,05,128.00
	EBT	$       94,872.00
	Less: Tax @28%	$       26,564.16
	EAT	$       68,307.84
	Add: Depreciation	205128
	Less: Principal payment	$       30,000.00
	After Taxation Cash Flow	$   2,43,435.84

I have calculated the total cash flow, if you need only cash flow from operations then debt principal payment should be ignored.