Vern plans to invest $100,000 in a growth stock, in year zero. The stock is not expected to pay dividends. However, Vern predicts that it will be worth $135,000 when he sells it in year three. The $35,000 increase in value will be taxable at the preferential capital gains rate of 15 percent. Use Appendix A and Appendix B.

a. Using a 4 percent discount rate, calculate the net present value of after-tax cash flows from this investment. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

NPV=