Five Stars Inc., is considering a new three-year expansion project that requires an initial fixed asset

investment of 3.9 million. The fixed asset will be depreciated straight-line to zero over its three-year

tax life, after which time it will be worthless. The project is estimated to generate $2,650,000 in

annual sales, with costs of $840,000. Suppose the project requires an initial investment in net working

capital of $300,000 and the net working capital will be fully recovered at the end of the project. If the

tax rate is 21% and the required rate of return on the project is 12%, what is the project's NPV?