The table below offers EBIT for a potential capital investment for Fake Company Zeta. (This same project will be used for all of your FMC #3 work.) You should be able to determine a few things once you consider the following:

• The initial investment is $4,000.
• Depreciation is straight line over four years.
• The company's WACC is estimated at 15.0%.
• Company analysts estimate that a proper salvage value at the end of the project life of four years is about 30% of the initial investment.
• The company's tax rate is 30.0%.

	YEAR 1	YEAR 2	YEAR 3	YEAR 4
EBIT	$500	$650	$700	$1,100

What is this project's net present value?