The company will scrap its old information system and will receive no money as a consequence. The new system will be depreciated over 10 years at a rate of $100,000 per year. Gemini’s tax rate is 30 percent, and the company has a 7 percent after-tax cost of capital.
What is the after-tax net present value of Gemini’s new information system? Use the time value of money charts as needed for your calculations. If required, use a minus sign to indicate a negative net present value. Do not round intermediate amounts. Round your final answer to two decimal places.