Hagerstown Holdings is considering whether to take a project with costs and revenues that were forecast by a consultant to whom Hagerstown paid $75,000. The project will require the purchase of new equipment costing $5,000,000, inventories increase by $100,000, and accounts payable increase by $50,000 in year 0. Hagerstown Holdings will have to use a vacant plant that it already owns that it could also sell now for $2,000,000 after taxes and transaction fees. Revenues will be $2,000,000 per year from years 1 through 10. Operating costs will be 40% of revenues. The equipment will be straight-line depreciated over 10 years to zero. In the last year of the project (year 10), only the equipment will have a salvage value of $100,000 and all additions to net working capital will be recovered. At a cost of capital of 7%, what is the net present value of this project? The corporate tax rate is 25%.