Cardinal Company is considering a project that would have a five-year life and require a $ 2,500,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: Sales $3,500,000 Variable expenses 1,800,000 Contribution margin 1,400,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $800,000 Depreciation 350,000 Total fixed expenses 1,150,000 Net operating income $250,000 The company's discount rate is 12% (3.605). Required: Compute the project's net present value