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Kate Sharma bought an investment that will generate the following cash inflows and cash outflows over a three-year period: Year 0 Year 1 Year 2

Kate Sharma bought an investment that will generate the following cash inflows and cash outflows over a three-year period:

Year 0

Year 1

Year 2

Taxable revenue

42,000

56,000

80,000

Nontaxable revenue

6,000

8,500

9,000

Deductible expenses

(20,000)

(20,000)

(25,000)

If Ms. Sharmas marginal tax rate over the three-year period is 37% and she uses a 6% discount rate, what is the NPV of the transaction using the appropriate present value tables in Appendix A?

Round the final answer to the nearest whole dollar.

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