1. A manager is considering the following investment:

Estimated capital investment $270,000

Estimated useful life 3 years

Estimated disposal value in 3 years 0

Estimated annual savings in cash operating costs $150,000

Minimum desired rate of return 12%

Present value of ordinary annuity, 3 periods at 12% 2.4018

Present value of one, 3 periods at 12% 0.7118

Assume straight-line depreciation is used. Ignore income taxes. The net present value of the investment is ________.