QUESTION $3$

Phone Home, Inc. is considering a new $5-$year expansion project that requires an initial fixed

asset investment of $$2\mathrm{.}484$ million. The fixed asset will be depreciated straight$-$line to zero over

its $5-$year tax life, after which time it will be worthless. The project is estimated to generate

$$2,208,000$ in annual sales, with costs of $$883,200.$ The tax rate is $32$ percent and the required

return on the project is $11$ percent. What is the net present value for this project?