Gaston Company is considering a capital budgeting project that would require a $2,600,000 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				$	3,000,000
Variable expenses					1,500,000
Contribution margin					1,500,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	630,000
Depreciation		520,000
Total fixed expenses					1,150,000
Net operating income				$	350,000
Required: Compute the projects net present value. (Round discount factor(s) to 3 decimal places.)