The Johnson Research Organization, a nonprofit organization that does not pay taxes, is considering buying laboratory equipment with an estimated life of seven years so it will not have to use outsiders' laboratories for certain types of work. The following are all of the cash flows affected by the decision: UseExhibit A.8.

Investment (outflow at time 0)$6,450,000Periodic operating cash flows:Annual cash savings because outside laboratories are not used1,430,000Additional cash outflow for people and supplies to operate the equipment230,000Salvage value after seven years, which is the estimated life of this project430,000Discount rate8%

Required:

Calculate the net present value of this decision.(Round PV factor to 3 decimal places.)