Sally Omar is the manager of the office products division of Granger Enterprises. In this position, her annual bonus is based on an appraisal of return on investment (ROI) measured as Division income End-of-year division assets (net of accumulated depreciation).

Currently, Sally is considering investing $42,352,000 in modernization of the division plant in Tennessee. She estimates that the project will generate cash savings of $6,256,000 per year for 8 years. The plant improvements will be depreciated over 8 years ($42,352,000 8 years = $5,294,000). Thus, the annual effect on income will be $962,000 ($6,256,000 - $5,294,000).

Using a discount rate of 10 percent, calculate the NPV of the modernization project.

NPV$?