firm Q is about to engage in a transaction with the following cash flows over a three-year period. Use Appendix A and Appendix B.

Year 0Year 1Year 2Taxable revenue$ 13,300$ 24,300$ 31,700Deductible expenses(4,500)(6,600)(10,400)Nondeductible expenses(555)(2,200)0

Required:

If the firms marginal tax rate over the three-year period is 30 percent and its discount rate is 6 percent, compute the NPV of the transaction.

Note: Expenses and cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.