Your firm is trying to decide whether to invest in a new project opportunity based on the following information. The initial cash outlay will total $750,000. The money will be payable immediately upon the start of the project. The company predicts that the project will generate a stream of earnings of $150,000, $100,000, $100,000, $300,000, and $500,000, per year, respectively, starting in Year 2. The required rate of return is 10%, and the expected rate of return is 3%.

1. What is the net present value of this project?