Steve is deciding between two investments. Both investments will require an initial cash outlay of $100,000 at the beginning of year 1. Investment A will yield $17,000 before-tax cash flow at the end of years 1, 2 and 3. This cash represents ordinary taxable income. At the end of year 3, Steve can liquidate the investment and recover his $100,000 cash outlay. He must pay a nondeductible (for tax purposes) $500 annual fee at the end of years 1, 2, and 3 to maintain Investment A. Investment B will not yield any before-tax cash flow during the period over which Steve will hold the investment. At the end of year 3, Steve will be able to sell Investment B for $140,000 cash. His $40,000 profit on the sale will be a capital gain. Required: Assume Steve has other taxable income of $250,000 and is in the 35% marginal tax bracket, a 5% discount rate, and end-of-year tax payments. Determine which investment has the greater net present value. (Appendix F of our text has PV Tables.)

If you could show this with excel would be great thank you!!!

the third picture is present value of $1 and the fourth is present value of an ordinary annuity of $1

Future Value of an Ordinary Annuity of $1 AN 10% NUR 1 2 3 4 5 6 7 8 9 10 1.0000 2.0100 3.0301 4.0604 5.1010 6.1520 7.2135 1.2857 9.3685 10.4622 11.5668 12.6825 13.8093 14.9474 16.0969 17.2579 18.4304 19.6147 20.8109 220190 29 1.0000 20200 3.0604 4.1216 5.2040 6.3081 74343 8.5830 9.7546 10.9497 12.1687 134121 14.6803 15.9739 17.2934 18.6393 20.0121 21.4123 22.8406 24.2974 394 1.0000 20300 3.0909 4.1836 53091 64684 7.6625 8.8923 10.1591 114639 12.8078 14.1920 156178 17.036) 18.5989 20.1569 21.7616 23.4144 25.1169 26.8704 1.0000 20400 3.1216 4.2465 54163 6.6330 78983 9.2142 10.5828 12.0061 134864 150258 16.6268 18.2019 20.0236 21.8245 23.6925 25.6454 276712 29.7781 1.0000 20500 3.1525 43101 5.5256 6.8019 8.1420 9.5491 110200 12.5779 14.2068 15.9171 17.7130 19.5986 21.5786 23.6575 25.8404 28.1324 30.5390 33.0060 6% ZN 1.0000 1.0000 20600 2.0700 3.1836 3.2149 43746 44399 5.6371 $7507 6.9753 7,1533 8.3930 8,6540 9.1975 10.2598 11:4913 11.9780 13.1808 13.8164 14.9716 15.7836 16.8699 17.8885 18.8821 20.1406 21.0151 22.5505 23.2760 25.1290 25.6725 27.8881 282129 30.8402 30.9057 33.9990 33.7600 37.3790 36.7856 40.9955 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9220 106106 12.4076 14.4864 16.6455 18.9771 21.4953 24.21-49 27.1521 30.3243 33.7502 37.4502 41.4463 45.7620 1.0000 2.0900 3.2781 4.5731 5.9847 7.5233 9.2001 11.0285 13.0210 15.1929 17.5603 20.1407 22.9534 26.0192 29.3609 33.0034 36.9737 41.3013 46.0185 51.1001 1.0000 2.1000 33100 4,6410 6.1051 7.7156 94672 11.4350 13.5795 15.9374 18.5312 21.1543 24.5227 27.9750 31.7725 35.9497 40.5447 45.5992 51.1591 57.2750 11 125 1.0000 1.0000 2.1100 2.1200 3.3421 33744 4.7097 47793 6.2278 6.3523 7.9129 1152 9.7833 10.0090 11,8594 12.1997 14.1640 147757 167220 17.5457 19.5614 20.65-46 22.7132 24.1331 26.2116 28.0291 30.0919 32.1926 34.4054 372797 39.1899 42.7533 44. SOOS 18.8837 50.3959 55.7497 56.9395 63.4197 64.2028 72.0524 11 12 13 14 15 16 17 18 19 20 Future Value of $1 196 35 45 12 N/R 1 2 3 10400 10816 4 5 6 7 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 69 1.0600 1.1236 1.1910 1.2625 1.3382 14185 1.5036 1.5938 1.6895 1.7908 1.8983 1.0200 10404 1.0612 1.0824 1.1041 1.1262 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 1.3195 1.3459 1.3728 1.4002 1.4282 1.4568 1.4859 1.0300 1.0609 1.0927 1.1255 1.1993 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 18061 8 9 5 1.0500 1.1025 1.1576 1.2155 1.2763 13401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 1.8856 1.9799 2.0789 2. 1829 22920 2.4066 2.5270 2.6533 1,0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.1049 2.2522 24098 25785 1.1249 1.1699 1.2167 1.2653 1.3159 13686 1.4233 1.4802 1.5395 1.6010 1.6651 1.7312 1.8009 18730 1.9479 2.0258 2.1068 2.1911 10 11 B 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7195 2.9372 3.1722 24259 3.7000 3.9950 4.3157 4.6610 9% 1.0900 1.1881 1.2950 14116 1.5356 1.6771 18280 1.9926 2.1719 23674 25804 28127 3.0658 3.3417 36425 3.9703 43276 4.7171 5.1417 5.6044 109 1.1000 1.2100 1.3310 1.4641 1.610S 1.7716 1.9487 2.1436 2.3579 2.5937 28531 3.1384 3.4523 3.7975 11% 1.1100 12321 1.3676 1.5181 1.6851 1.8704 20762 23045 2.5580 28394 3.1518 3.4985 3.8833 4.3104 4.7846 1.1200 12544 14049 1.5735 1.7623 19738 2.2107 24700 2.7731 3.1058 34785 38960 4.3635 48871 5.4736 61304 68660 7.6900 86126 9.6463 12 13 14 20122 2.1329 2.2609 2.3966 4.1772 15 16 17 2.5404 216928 28543 3.0256 1.2071 27590 2.9522 3.1568 33799 3.6165 308697 4.5950 5.0545 S5599 6.1159 6,7275 5.3109 5.8951 65436 7.2633 8.0623 18 19 20 NIR 16 22 3% 5% 696 7* 99 1095 114 0.9804 0.9709 1 2 0.9091 72% 0.8929 0.7972 0.7118 0.6355 3 4 0.9009 0.8116 0.7312 0.6587 0.5935 0.5346 04817 5 6 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 7 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 08528 08444 0.8360 09615 0.9246 0.8990 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.9346 0.8734 0.9163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 8 0.9612 0.9423 0.9238 0.9057 08880 0.8706 08535 0.8368 08203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 9 10 0.9259 0.8573 0.7938 0.7350 0.6806 06302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 11 0.4604 04224 0.3875 0.3555 0.3262 0.2992 0 2745 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.4339 0.3909 0.3522 0.3173 0.2858 0.2525 0.2320 0.2090 12 0.5674 0:5066 04523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2016 0.1822 0.1631 0.1456 0.1300 0.1161 0.1037 13 14 15 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0,3714 0.3503 0.3305 0.3118 041 SO 0.3878 0.3624 03387 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 16 12 18 0.5553 0.5339 0.5134 0.4936 0.4746 0.4810 0,4581 0,4363 0.4155 0.3957 0.3769 0.3166 0.2959 02765 0.258A 0.2519 0.2311 0.2120 0.1945 0.1784 0.1883 0.1696 0.1528 0.1377 0.1240 19 08277 08195 20 0.4564 N/R 396 59 695 796 896 104 1 11% 0.9901 2 3 4 5 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 6 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7 296 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 8 9 10 0.9709 19135 28286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 143238 14.8775 0.9615 1.8861 2.7751 3.6299 4A518 5.2421 6.0021 6.7327 74353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 114699 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 6,8052 7.1607 7.4869 7.7862 8.0007 8.3126 8.5436 8.7556 8.9501 9.1285 0.9091 1.7355 2.4869 3.1699 3.7908 43553 4.8684 53349 5.7890 6.1446 6.4951 6,8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 0.9009 1.7125 2.4437 3.1024 3.6959 4.2305 4.7122 5.1461 5.5370 5.8392 6.2065 6.4924 6.7499 69819 7.1909 73792 7.5488 7.7016 7.8393 7.9633 0.8929 1.8901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 11 12 13 14 15 7.4987 7.9427 8.3577 8.7455 9. 1079 9.4466 9.7632 10.0591 10.3356 10.5940 16 17 18 14.2919 14.9920 15.6785 16.3514 19 20 74694