Hello,

I am having trouble with this question in my Finance & Accounting HRM course. I'm not sure what formula to use to find the present value

Cardinal Company is considering a project that would require a $2,975,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 14%. The project would provide net operating income each year as follows:

Sales $ 2,735,000

Variable expenses $1,000,000

Contribution margin $1,735,000

Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 735,000

Depreciation $535,000

Total fixed expenses $1,270,000

Net operating income$ 465,000

UseExhibit 10-1andExhibit 10-2on pages 457 and 458 of your text to determine the appropriate discount factor(s) using tables.

Required:

What is the project's net present value?(Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.)