Scoth Corp is contemplating purchasing equipment that would increase sales revenues by $314,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $560,000 and have a 5 year life with a $70,000 salvage value. The annual depreciation would be $90,000.

Assuming the companys discount rate is 13%, the net present value of the investment is closest to (the factors below for a 13% discount rate can be used to solve this problem):

Periods	Present Value of $1	Present Value of an Annuity of $1
1	0.885	0.885
2	0.783	1.668
3	0.693	2.361
4	0.613	2.974
5	0.543	3.517