Gaston Company is considering a capital budgeting project that would require a $2,100,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 12%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows:

Sales 2,900,000

Variable expenses 1,630,000

Contribution margin 1,270,000

Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs 510,000

Depreciation 420,000

Total fixed expenses 930,000

Net operating income $340,000

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables Required:

Compute the project's net present value Net present value