When there is little or no inflation, a homeowner can expect to rent an unfurnished home for 12% of the market value of the property (home and land) per year. About 18 of the rental income is paid out for property taxes, insurance, and other operating expenses. Thus the net annual income to the owner is 10.5% of the market value of the property. Since prices are relatively stable, the future selling price of the property often equals the original price paid by the owner. For a $150,000 property (where the land is estimated at $46,500 of the $150,000), compute the after-tax rate of return, assuming the selling price 59 months later (in December) equals the original purchase price. Use modified accelerated cost recovery system depreciation beginning January 1. Also, assume a 35% income tax rate.