Cardinal Company is considering a project that would require a $2,875,000 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 16%. The project would provide net operating income each year as follows:

Sales

$

2,871,000

Variable expenses

1,018,000

Contribution margin

1,853,000

Fixed expenses:

Advertising, salaries, and other fixed out-of-pocket costs

$

753,000

Depreciation

515,000

Total fixed expenses

1,268,000

Net operating income

$

585,000

.	Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual net present value?