Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his divisions return on investment (ROI), which has been above 20% each of the last three years. Casey is considering a capital budgeting project that would require a $3,500,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Companys discount rate is 16%. The project would provide net operating income each year for five years as follows:

Sales		$	3,400,000
Variable expenses			1,600,000
Contribution margin			1,800,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$700,000
Depreciation	700,000
Total fixed expenses			1,400,000
Net operating income		$	400,000

Required:

1. What is the projects net present value? (Round discount factor(s) to 3 decimal places.)