A company is considering a project that would require the purchase of an asset for $150,000. The asset belongs in a 20% CCA class and is expected to have no salvage value at the end of the 7-year project.

The project would require a net working capital investment of $26,000 up-front. The company has a tax rate of 30% and a required return of 16%. The project is expected to generate annual pre-tax cost savings of $45,000. What is the expected present value of after-tax savings for this project?