Cardinal Company is considering a project that would require a $2,865,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The companys discount rate is 12%. The project would provide net operating income each year as follows:

Sales					$	2,869,000
Variable expenses						1,126,000
Contribution margin						1,743,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	709,000
Depreciation		513,000
Total fixed expenses						1,222,000
Net operating income					$	521,000

Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables.

Required: What is the present value of the projects annual net cash inflows? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.)