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

$

430,000

Working capital needed

$

80,000

Overhaul of the equipment in two years

$

28,000

Annual revenues and costs:

Sales revenues

$

550,000

Variable expenses

$

280,000

Fixed out-of-pocket operating costs

$

120,000

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 companys tax rate is 30% and its after-tax cost of capital is 12%. When the project concludes in five years the working capital will be released for investment elsewhere within the company.

Present Value of an annuity of $1 in arrears = 3.605

Present Value of $1 = 0.567

Required:

Calculate the net present value of this investment opportunity. (Negative amounts should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)

Net present value

?