A company is considering purchasing an asset for $56,000 that would have a useful life of 10 years and would have a salvage value of $8,000. For tax purposes, the entire original cost of the asset would be depreciated over 10 years using the straight-line method and the salvage value would be ignored. The asset would generate annual net cash inflows of $32,000 throughout its useful life. The project would require additional working capital of $11,000, which would be released at the end of the project. The company's tax rate is 40% and its discount rate is 13%. Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.
Required: What is the net present value of the asset? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answer to the nearest dollar amount. Omit the "$" sign in your response.)