Mester Corporation has provided the following information concerning a capital budgeting project:

After-tax discount rate 12 %

Tax rate 30 %

Expected life of the project 4

Investment required in equipment $ 64,000

Salvage value of equipment $ 0

Annual sales $ 160,000

Annual cash operating expenses $ 115,000

One-time renovation expense in year 3 $ 20,000

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables.

The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.

The net present value of the project is closest to: (Round intermediate calculations and final answer to the nearest dollar amount.)