Cardinal Company is considering a project that would require a $2,800,000 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 $2,845,000

Variable expenses 1,109,000

Contribution margin 1,736,000

Fixed expenses:

Advertising, salaries, and other fixed out-of-pocket costs $799,000

Depreciation 500,000

Total fixed expenses 1,299,000

Net operating income $437,000

1. What is the present value of the project