Gateway Communications is considering a project with an initial fixed asset cost of $1.54 million which will be depreciated straight-line to a zero book value over the 9-year life of the project. At the end of the project the equipment will be sold for an estimated $241,000. The project will not directly produce any sales but will reduce operating costs by $401,000 a year. The tax rate is 35 percent. The project will require $52,500 of inventory which will be recouped when the project ends. What is the net present value at the required rate of return of 11.6 percent?