IBM is in the process of assessing the attractiveness of a new project. The project has an estimated life of three years. The projects revenue estimates are:

• Sales = 50,000 units/year.
• Per unit price: $100 in year 1, $110 in year 2, $130 in year 3.

The projects cost estimates are:

• Up-front for new equipment = $2,400,000.
• Annual overhead = $1,300,000.
• Per unit cost = $50.

The expected life of the new equipment is 3 years, and it will be depreciated straight-line over that time. IBM plans to resell this equipment for $800,000 at the end of year 3.

An investment of $100,000 in net working capital will be made in year 0, which will be recovered at the end of the project.

What is the net present value of this project if the corporate tax rate is 35% and the discount rate is 16%?