Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $110,000. Cautionary would immediately sell some of Danger's assets for $11,000 if it makes the acquisition. Danger has a cash balance of $1,100 at the time of the acquisition. If Cautionary believes it can generate after-tax cash inflows of $30,000 per year for the next 7 years from the Danger acquisition, should the firm make the acquisition? Base your recommendation on the net present value of the outlay using Cautionary's 9% cost of capital.

The net present value of the acquisition is