Carper was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $395,000, had a useful life of 7 years with a salvage value of $15,000. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $22,960 and $79,000 respectively. Carper's 8% cost of capital is also the required rate of return on the investment. Cash payback period is 5 years. Annual rate of return is 11.2%. Compute Net present value.

* Your answer is incorrect. Using the discounted cash flow technique, compute the net present value. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 589.71.) Net present value $