You're considering starting a software company with an initial (t=**0**) cost of $**71**.

The first positive cash flow will be **$10** in one year (t=1), and will grow by **2**% pa for **3** years. So the next cash flows will be: **$10** at t=**1**;

**$10.2** (=10*(1+0.02)^1) at t=**2**;

**$10.404** (=10*(1+0.02)^2) at t=**3**;

**$10.6121** (=10*(1+0.02)^3) at t=**4**.

From t=**4** onwards, these positive cash flows will grow at the lower rate **-3**% pa (note the negative sign) in perpetuity. So the subsequent cash flows will be: **$10.2937** (=10*(1+0.02)^3*(1-0.03)^1) at t=**5**;

**$9.9849** (=10*(1+0.02)^3*(1-0.03)^2) at t=**6**;

**$9.6854** (=10*(1+0.02)^3*(1-0.03)^3) at t=**7**, and so on forever.

The required return is **10**% pa. What is the net present value (NPV) of starting this company? All results above are rounded to 4 decimal points, and answer options below to 2 decimal points. The NPV of starting this company is: