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				$	290,000
Working capital needed				$	66,000
Overhaul of the equipment in two years				$	21,000
Annual revenues and costs:
Sales revenues				$	410,000
Variable expenses				$	210,000
Fixed out-of-pocket operating costs				$	92,000

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