Gaston Company is considering a capital budgeting project that would require a $2,800,000 investment in equipment with a useful life of five years and no salvage value. The companys 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				$	3,200,000
Variable expenses					1,540,000
Contribution margin					1,660,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	660,000
Depreciation		560,000
Total fixed expenses					1,220,000
Net operating income				$	440,000

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

Required:

Compute the projects net present value. (Round discount factor(s) to 3 decimal places.)