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 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				$	3,100,000
Variable expenses					1,690,000
Contribution margin					1,410,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	530,000
Depreciation		460,000
Total fixed expenses					990,000
Net operating income				$	420,000

use the folloing tables to determine the appropriate discount factor(s) using tables.

Required:

Compute the projects net present value.