7. A company is evaluating a project, which will cost 500,000 and will have no salvage value at the end of its 5-year life. The project will save costs of 200,000 a year. The company will finance the project by a 12 per cent loan and will repay loan in equal instalments of 100,000 a year. The firm's tax rate is 30 per cent and the after-tax cost of capital is 15 per cent. What is the NPV of the project? Assume straight-line depreciation for tax purposes.