Please calculate Net Present Value

Exercise A-14 (Algo) Present Value Analysis in Nonprofit Organizations The Johnson Research Organization, a nonprofit organization that does not pay taxes, is considering buying laboratory equipment with an estimated life of seven years so it will not have to use outsiders' laboratories for certain types of work. The following are all of the cash flows affected by the decision: Use Exhibit A.8. $5,300,000 Investment (outflow at time ) Periodic operating cash flows: Annual cash savings because outside laboratories are not used Additional cash outflow for people and supplies to operate the equipment Salvage value after seven years, which is the estimated life of this project Discount rate 1,450,000 250,000 450,000 14% Required: Calculate the net present value of this decision. (Round PV factor to 3 decimal places.) Net present value Should the organization buy the equipment? O Yes