Nash Foods, an all-equity firm, is considering an investment of $1.50 million that will be depreciated according to the straight-line method over its five-year life. The project is expected to generate earnings before taxes and depreciation of $600,000 per year for five years. The investment will not change the risk level of the firm. The company will finance the project with a five-year, 8 percent loan to finance the project from a local bank. All principal will be repaid in one balloon payment at the end of the fifth year. If the company financed the project entirely with equity, the firms cost of capital would be 12 percent. The corporate tax rate is 25 percent.

Calculate the adjusted present value of the project.