Allegience Insurance Companys management is considering an advertising program that would require an initial expenditure of $190,325 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $90,000, with associated expenses of $32,500. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegiences tax rate is 30 percent. (Hint: The $190,325 advertising cost is an expense.)

1. Compute the payback period for the advertising program. (The Payback Period is 3 Years.) ***2. Calculate the advertising programs net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate calculations and final answer to the nearest whole dollar.)

Having trouble with finding the advertising programs net present value.