Tim is evaluating a 10 year project. Using a discount rate of 10%, Tim calculated the project's NPV as $100.

After completing the project estimation, the environmental compliance group tells Tim that the company will have to take out a liability insurance policy for the entire firm if he goes through with the project. The policy will cover the entire firm, but no other projects will require such a policy. The annual after-tax premiums on this policy are $22 per year, paid by the firm for each of the 10 years in the project. (Assume the premiums can be paid at the end of the year, no tax implications, and that the same discount rate applies.) What is the new NPV after accounting for the insurance?