Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $2.3 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. UseAppendix Das an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Years

1-5 6-15 16-25

Cash inflow (aftertax)....................................................$220,000............$240,000....................$280,000

Synergistic benefits (aftertax).........................................27,000...................37,000.........................57,000

The cost of capital for the acquiring firm is 10 percent.

a.Compute the net present value.(Negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your final answer to 2 decimal places.)