Sarasota Company is considering a capital investment of $449,800 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $42,000 and $130,000, respectively. Sarasota has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment.

Using the discounted cash flow technique, compute the net present value. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)

Net present value

$.