The horizon of the project is estimated to be 2 years, with the following sales forecasts: Sales_1 = $0.8 million and Sales_2 = $1.9 million. The project requires purchasing a machine that costs $1.6 million, and can be depreciated using the straight-line method down to zero book value over 4 years. Annual variable costs are estimated to be 20% of current year sales. The CFO believes that the machine can be sold at the end of the project, t=2, for $0.9 million. Net working capital requirements are estimated to be as follows: zero immediately; 20% of current year sales at t=1; and zero at t=2, when NWC will be fully liquidated. The project will use existing office space for which the company paid $1,550,000 three years ago and could be rented out for $40,000 a year to be paid at the end of each year for the next two years. Vandalay's marginal corporate tax rate is 20%. The cost-of-debt of Vandalay Industries is currently at 5% per year, their beta of equity is 1.5, and their debt-to-equity ratio is 0.25. The project will be financed using the same capital structure as the firm. Given their conservative debt levels, the debt can be assumed risk-free, while the market risk-premium is estimated to be 6%. What is the NPV of the project?