Brodigan Corporation has provided the following information

concerning a capital budgeting project:

Investment required in equipment $450,000

Net annual operating cash inflow $220,000

Tax rate 30%

After-tax discount rate 12%

The expected life of the project and the equipment is 3

years and the equipment has zero salvage value. The

company uses straight-line depreciation on all equipment

and the depreciation expense on the equipment would be

$150,000 per year. Assume cash flows occur at the

end of the year except for the initial investments. The

company takes income taxes into account in its capital

budgeting. The net annual operating cash inflow is the

difference between the incremental sales revenue and

incremental cash operating expenses.

Required:

What is the net present value of the project?