Next Inc. is evaluating a capital project using the net present value method. The project has an initial cash outflow of $785,000 and the annual after-tax cash inflows for the project are below. For capital projects management requires a rate of return of 9.5%. Cash inflows are as follows: year 1 $125,000, year 2 $150,000, year 3 $175,000, year 4 $200,000 year 5 $250,000, year 6 $150,000, and year 7 $100,000.

What is the net present value of the project?