Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project:

Cost of equipment needed				$	400,000
Working capital needed				$	77,000
Overhaul of the equipment in two years				$	26,500
Annual revenues and costs:
Sales revenues				$	520,000
Variable expenses				$	265,000
Fixed out-of-pocket operating costs				$	114,000

The piece of equipment mentioned above has a useful life of five years and zero salvage value. Lander uses straight-line depreciation for financial reporting and tax purposes. The company