Scoth Corp is contemplating purchasing equipment that would increase sales revenues by $308,000 per year and cash operating expenses by $120,000 per year. The equipment would cost $600,000 and have a 5 year life with a $60,000 salvage value. The annual depreciation would be $105,000.

Assuming the companys discount rate is 10%, the net present value of the investment is closest to (the factors below for a 10% discount rate can be used to solve this problem):

Periods	Present Value of $1	Present Value of an Annuity of $1
1	0.909	0.909
2	0.826	1.736
3	0.751	2.487
4	0.683	3.170
5	0.621	3.791