Gaston Company is considering a capital budgeting project that would require a $2,400,000 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 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		$ 3,400,000
Variable expenses		1,930,000
Contribution margin		1,470,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$ 610,000
Depreciation	480,000
Total fixed expenses		1,090,000
Net operating income before tax		$ 380,000

Required:

Compute the projects net present value.