Dog Up! Franks is looking at a new sausage system with an installed cost of $468,000. This cost will be depreciated straight-line to zero over the project's 3-year life, at the end of which the sausage system can be scrapped for $72,000. The sausage system will save the firm $144,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $33,600. If the tax rate is 31 percent and the discount rate is 16 percent, the NPV of this project is $