A company is evaluating the replacement of an old machine with a new one. Last year, the company hired a consultant to conduct a feasibility study about this replacement project, which cost them $500,000 at that time. The consulting fees were expensed last year. The old machine was purchased 2 years ago for $3 million and was being depreciated using MACRS 5-year class (20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%). The old machine can be sold for $1 million at this time. If the old machine is not replaced, it can be sold for $400,000 four years from now. The replacement machine has a cost of $2 million, an estimated useful life of 4 years. This machine will be depreciated using straight-line method to 0 salvage value. The replacement machine would permit an output expansion, so sales would rise by $1 million per year; even so, the new machines much greater efficiency would cause operating expenses to decline by $250,000 per year. The new machine would require that inventories be increased by $1 million, but accounts payable and accrued expenses would simultaneously increase by $500,000 and 200,000 respectively. The interest expense on the debt component of the capital required for this project will be $250,000 annually. The new machine can be sold for $50,000 at the end of 4 years to another company. The companys marginal federal-plus-state tax rate is 40%, and its WACC is 12%. What is the initial investment CF0?