Derrick Iverson is a divisional manager for Holston 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. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Companys discount rate is 15%. The project would provide net operating income each year for five years as follows:

Sales		$	2,500,000
Variable expenses			1,000,000
Contribution margin			1,500,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$600,000
Depreciation	600,000
Total fixed expenses			1,200,000
Net operating income		$	300,000
Calculate the project's net present value