ABC Inc. is considering a project with an initial cost of $1,687. The project will not produce any cash flows for the first three years.

ABC Inc. is considering a project with an initial cost of $1,687. The project will not produce any cash flows for the first three years. Starting in year four, the project will produce cash inflows of $421 a year for three years. This project is risky, so the firm has assigned it a discount rate of 16 percent. What is the project's net present value?