Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,430,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,260,000 in annual sales, with costs of $1,250,000. The project requires an initial investment in net working capital of $161,000, and the fixed asset will have a market value of $186,000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 8 percent.