Asia O'Hara's is purchasing a new machine to build wearable Butterfly Sanctuaries. The machine costs $2 million.

Variable costs of producing the outfits will be $5, and they will be sold for $10.50. In addition, there will be annual maintenance costs in each of the four years of $150,000.

In order to fund the project, Asia will take out a $2 million loan, with a 5% annual interest rate.

Asia believes sales for the product will be:

Year	Sales Volume
1	100,000
2	125,000
3	250,000
4	125,000

At the end of four years, Asia will sell the machine for $250,000 and retire the loan.

What is the net present value of the project, if the appropriate discount rate is 12%?