Gateway Communications is considering a project with an initial fixed asset cost of $2.46 million which will be depreciated straight-line to a zero book value over the 10-year of the project. At the end of the project the equipment is scrapped. The project will reduce pre-tax costs to the firm by $725,000 a year. The tax rate is 35 percent. If the firm requires a 13 percent rate of return, what is the Net Present Value?