Gaston Company is considering a capital budgeting project that would require a $2,300,000 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 13%. 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$3,100,000Variable expenses1,690,000Contribution margin1,410,000Fixed expenses:Advertising, salaries, and other fixed out-of-pocket costs$530,000Depreciation460,000Total fixed expenses990,000Net operating income$420,000

Required:

Compute the project's net present value.

Please thoroughly explain how you find the discount rate and NPV, thank you.