Sam Co. has the opportunity to invest in a new project that costs $1,200 today. The company anticipates earning 250 a year for the next two years and then 300 per year for the subsequent 4 years. Assuming an 10% required rate of return, calculate the present value of the incremental cash flows.

Time Cash Flow

0 -1200

1 250

2 250

3 300

4 300

5 300

6 300