Management is considering purchasing an asset for $51,000 that would have a useful life of 6 years and no salvage value. For tax purposes, the entire original cost of the asset would be depreciated over 6 years using the straight-line method. The asset would generate annual net cash inflows of $42,000 throughout its useful life. The project would require additional working capital of $4,000, which would be released at the end of the project. The company's tax rate is 40% and its discount rate is 13%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required: What is the net present value of the asset? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.) Net present value $