A project will produce an operating cash flow of $1,670,000 a year for three years. The initial cash outlay for equipment will be $2,850,000. The net aftertax salvage value of $350,000 will be received at the end of the project (i.e., at the end of Year 3). The project requires $109,000 of net working capital up front (at t=0) that will be fully recovered when the project closes. What is the net present value of the project if the required rate of return is 12 percent?