Cardinal Company is considering a five-year project that would require a $2,500,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 12%. The project would provide net operating income in each of five years as follows:

Sales		$ 2,853,000
Variable expenses		1,200,000
Contribution margin		1,653,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$ 790,000
Depreciation	500,000
Total fixed expenses		1,290,000
Net operating income		$ 363,000

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.

4. What is the projects net present value? (Round final answer to the nearest whole dollar amount.)