My response so far:

Firm Y has the opportunity to invest in a new venture. The projected cash flows are as follows: Year 0: Initial cash investment in the project of $300,000. Years 1, 2, and 3: Generate cash revenues of $50,000. Years 1, 2, and 3: Incur fully deductible cash expenditures of $30,000. Year 3: Incur nondeductible cash expenditure of $10,000. Year 3: Receive $300,000 cash as a return of the initial investment. Assuming a 6 percent discount rate and a 30 percent marginal tax rate, compute the NPV of the cash flows resulting from investment in this opportunity. Use Appendix A and Appendix B. (Round discount factor(s) to 3 decimal places. Cash outflows and negative amounts should be indicated by a minus sign.)

I know that the before tax cashflow in Year 3 is $310,000 and the Year 3 Present Value Factor is 0.84, but I can't figure out the Year 3 Tax Cash flow, After Tax Cash flow, and Present Value.

Appendix A Present Value of $1 4 % 7 % Periods 3% 5% 6% 8% 9% 971 962 925 889 952 907 864 823 784 746 711 677 645 614 585 557 530 505 481 458 436 416 396 377 943 935 873 816 763 713 666 926 857 794 735 681 630 583 540 500 463 429 397 368 340 315 917 842 772 708 650 943 890 915 888 863 837 813 789 766 744 722 701 681 661 642 623 605 587 570 554 840 792 747 705 665 627 592 558 527 497 469 442 417 394 371 350 331 312 855 822 790 760 596 547 S02 460 422 388 356 326 299 275 252 231 212 194 178 7 623 582 544 508 475 444 415 388 731 703 676 650 625 601 9 10 11 12 13 14 577 555 15 362 339 317 296 16 534 292 270 250 232 215 17 513 494 475 456 18 19 277 258 20 10 % 20 % Periods 11% 12 % 13% 14% 15% 901 812 731 659 593 535 482 434 391 352 317 286 877 769 675 592 $19 456 400 351 308 270 237 208 182 160 140 123 108 095 909 893 885 870 833 826 751 683 621 564 513 467 424 386 797 712 636 567 507 452 404 361 322 287 257 229 205 183 163 146 130 116 104 783 693 756 658 572 497 432 376 327 284 247 215 187 163 141 123 107 093 081 070 694 579 482 402 335 279 233 194 162 135 112 093 078 065 054 045 038 031 026 3 4 613 543 480 425 376 333 295 261 231 204 181 160 141 125 111 098 087 q 10 11 350 12 319 290 13 258 232 209 14 263 239 218 198 180 15 16 188 170 153 17 18 19 164 138 083 20 149 124 073 061 A-2 Appendix B Present Value of Annuity of $1 4 % 8 % 9 % Periods 3% 5% 6% 7% 917 971 1,913 2.829 3717 4,580 5417 962 952 1859 2.723 943 935 1808 2.624 926 1.783 2.577 1886 1833 2673 1.759 2531 2.775 3630 3546 3.465 3.387 3.312 3240 4,452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 4329 5,076 5.786 6.463 .108 7.722 8.306 8863 9.394 9.899 4212 4917 5.582 6210 6.802 7360 7.887 8.384 8853 9.295 9.712 10.106 10.477 4.100 4767 5389 5,971 6515 7024 7499 7943 8.358 8.745 9.108 9.447 9.763 10059 10.336 10594 3.993 4.623 5206 5.747 6247 6710 7.139 7.536 7904 8244 3.890 4.486 5.033 5535 5995 6418 6.805 7.161 7487 7.786 8.061 8.313 8544 8.756 8.950 9.129 6.230 7020 7.786 8530 9.253 9.954 10,635 11.296 10 11 12 13 14 15 11.938 11.118 10.380 8.559 16 17 18 19 20 12.561 13.166 13754 14.324 14.877 11.652 12.166 12.659 13.134 13.590 10.838 11.274 11690 12.085 12.462 8851 9.122 9.372 9.604 9.818 10828 11.158 11470 14 % 12 % Periods 10% 11% 13% 15% 20% 909 1,736 2.487 901 893 885 1668 2.361 877 870 833 7 1.713 2444 1690 2.402 1647 2.322 2914 3.433 3.889 4.288 4639 4.946 1626 2.283 2.855 3352 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 1528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4,327 4.439 3.170 3.102 3.037 2.974 3791 4.355 4.868 5.335 5.759 3696 3605 4.111 4564 4,968 5.328 3517 3.998 4.231 4.712 5.146 5537 5889 6.207 6.492 6750 6982 7.191 7379 7549 7.702 7839 7963 4.423 4.799 5.132 10 6.145 5.650 5426 5216 5453 11 12 13 14 15 16 17 6495 6814 7.103 7367 5.938 6.194 6424 6628 6.811 6.974 7.120 5,687 5918 6.122 6.302 6462 6604 6.729 5.660 5842 6002 6.142 6265 6.373 6.467 6550 6623 4533 4611 4.675 4.730 4.775 4812 4843 4870 7606 7824 8.022 8201 8.365 8514 5.847 5.954 6.047 6.128 6.198 6.259 18 7.250 7.366 7469 6840 19 6938 7025 20 A-3 Firm Y has the opportunity to invest in a new venture. The projected cash flows are as follows: Year 0: Initial cash investment in the project of $300,000. Years 1, 2, and 3 Generate cash revenues of $50,000. Years 1, 2, and 3: Incur fully deductible cash expenditures of $30,000. Year 3: Incur nondeductible cash expenditure of $10,000. Year 3: Receive $300,000 cash as a return of the initial investment Assuming a 6 percent discount rate and a 30 percent marginal tax rate, compute the NPV of the cash flows resulting from investment in this opportunity. Use Appendix A and Appendix B. (Round discount factor(s) to 3 decimal places. Cash outflows and negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Year 0 Year 1 Year 2 Year 3 Before-tax cash flow (300,000) 20,000 20,000 310,000 Tax Cash Flow 0 (6,000) (6,000) (3,000) 14,000 13.202 After Tax Cash Flow 14.000 7,000 (300,000) (300,000) (2.940) PV 12,460 263,760 NPV