The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firms R&D department. The equipments basic price is $81,197, and it would cost another $9,022 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $32,479. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,774. The machine would have no effect on revenues, but it is expected to save the firm $35,106 per year in before-tax operating costs, mainly labor. The firms marginal federal-plus-state tax rate is 21.0% and its cost of capital is 14.0%. How much is the year 2 NOPAT for this project?

		($4,301)
		($3,781)
		($3,685)
		($3,947)
		($5,410)