Gaston Company is considering a capital budgeting project that would require a $2,500,000 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:

Gaston Company is considering a capital budgeting project that would require a $2,500,000 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 Variable expenses $3,200,000 1,660,000 1,540,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $700,000 500,000 Total fixed expenses 1,200,000 Net operating income $ 340,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) Required: Compute the project's net present value. (Round discount factor(s) to 3 decimal places.) Net present value