Gateway Communications is considering a project with an initial fixed asset cost of $ 2 . 8 7 2 million which will be depreciated straight

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Gateway Communications is considering a project with an initial fixed asset cost of $$2\mathrm{.}872$ million which will be depreciated straight$-$line to a zero book value over the $10-$year life of the project. At the end of the project the equipment will be sold for an estimated $$300,000.$ The project will not directly produce any sales but will reduce operating costs by $$714,000$ a year. The tax rate is $35\%.$ The project will require $$52,000$ of inventory which will be recouped when the project ends. What is the NPV at a required return of $13\mathrm{.}6\%?$