The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises for $$3\mathrm{.}9$ million. Kent has a $$900,000$ tax loss carryforward that could be used immediately by the Clark Corporation, which is paying taxes at the rate of $40$ percent. Kent will provide $$500,000$ per year in cash flow $($aftertax income plus depreciation$)$ for the next $19$ years. The discount rate is $13$ percent. se Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Compute the net present value.