PIM Industries Incorporated manufactures electronics components. Each unit costs $50 before the final test. The final test rejects, on average, 6% of the 63,000 units manufactured per year. The average rejection rate of the industry is 4%. A consultant has determined that poor lighting is the most likely cause of this high rejection rate. It would cost $190,000 to install adequate lighting in the assembly department, which would be useful for 5 years. With adequate lighting (which will cost an additional $6,800 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average.

Required:

1-a. What would be the projected five-year impact on operating profit?