HP 12c Platinum Reference Guide

14 Real Estate
2. Calculate the Outstanding Balance of the Mortgage at the end of the Income
Projection Period and subtract it from Proceeds of Resale. The result is Net Cash
Proceeds of Resale.
Thus:
Cash Proceeds of Resale = Sales Price - Transaction Costs.
Net Cash Proceeds of Resale = Cash Proceeds of Resale - Outstanding Mortgage Balance.
Example: The apartment property in the preceding example is expected to be resold in 10
years. The anticipated resale price is $800,000. The transaction costs are expected to be
7% of the resale price. The mortgage is the same as that indicated in the preceding
example.
• What will the Mortgage Balance be in 10 years?
• What are the Cash Proceeds of Resale and Net Cash Proceeds of Resale?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
g gÂ
fCLEARG fCLEARG
20gA 20gA
240.00
Mortgage term.
11.5gC 11.5gC
0.96
Mortgage rate.
700000$ 700000$
Property value.
P P
-7,465.01
Monthly payment.
10gA 10gA
120.00
Projection period.
M MM
-530,956.57
Mortgage balance in 10 years.
800000\ 800000-
Estimated resale.
7b- 7b+
744,000.00
Cash Proceeds of Resale.
+ ~³
213,043.43
Net Cash Proceeds of Resale.
After-Tax Cash Flows
The After-Tax Cash Flow (ATCF) is found for the each year by deducting the Income
Tax Liability for that year from the Cash Throw Off.
Where Taxable Income = Net Operating Income - interest - depreciation,
Tax Liability = Taxable Income x Marginal Tax Rate,
and After Tax Cash Flow = Cash Throw Off - Tax Liability.
The After-Tax Cash Flow for the initial and successive years may be calculated by the
following HP 12C Platinum program. This program calculates the Net Operating Income
using the Potential Gross Income, operational cost and vacancy rate. The Net Operating

HP 12c Platinum Specifications

General

Digits	10 digits
Battery type	CR2032
Type	Financial
Form factor	Pocket

Weight and Dimensions

Weight	110 g
Dimensions (WxDxH)	79 x 129 x 15 mm