The Seago Company is planning to purchase $640,000 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment:

Year Projected                         Cash Flows

1        . . . . . . . . . . . . . . . . . . . . $ 240,000

2         . . . . . . . . . . . . . . . . . . . .   200,000

3         . . . . . . . . . . . . . . . . . . . .   160,000

4         . . . . . . . . . . . . . . . . . . . .   100,000

5         . . . . . . . . . . . . . . . . . . . .     60,000

6         . . . . . . . . . . . . . . . . . . . .     40,000

7         . . . . . . . . . . . . . . . . . . . .     40,000

Total  . . . . . . . . . . . . . . . . . . . . $840,000

Required

Calculate the net present value of the proposed equipment purchase. Seago uses a 10% discount rate.