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Cardinal Company is considering a project that would require a $2,765,000 investment in equipment with a useful life of five years. At the end

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Cardinal Company is considering a project that would require a $2,765,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: Sales Variable expenses Fixed expenses: $2,851,000 1,150,000 1,701,000 Contribution margin Advertising, salaries, and other fixed out-of-pocket costs Depreciation $670,000 493,000 Total fixed expenses Net operating income 1,163,000. $ 538,000 Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, other intermediate calculations and final answer to the nearest whole dollar.) Net present value

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