Suppose that a municipal government is considering the purchase of a piece of automated/robotic equipment with an expected life of three years. The purchase would occur on January 1 and all expenses and revenues would be assessed at year's end. Annual maintenance costs are estimated to be $500 and the salvage value at the end of the third year is $1,000. The municipal finance department forecasts annual revenues of $5,250. If the annual interest rate is 8% what is the net present value (exclusive of the purchase price) of this equipment?