A new firm requires an initial investment of $500 and will generate a before-tax gross return of $600 after one year and then shut down. The firm is partially financed with $200 of debt at an expected return of 4%. The appropriate unlevered after-tax cost of capital is 14% and the marginal income tax rate is 21%.

What is the expected after-tax cash flow for an all-equity firm?

What is the APV?