In the following year, a lessor offers LESSEECO a two-year lease on an asset costing €1 million. The lessor proposes eight quarterly rentals of €133,400 payable in advance. The lease begins shortly before the company’s accounting year-end. Interest on a loan secured on the asset would be 8%. Allowable depreciation for the asset is 25% annually on the reducing balance, starting immediately in Period 0. The asset’s residual value will be zero at the end of the lease.

Early in the next year, LESSEECO expects to acquire another company having accumulated taxable losses. As a result, LESSEECO expects to pay no corporate taxes for the first year of the lease. What is the NPV of the proposed lease from LESSEECO’s perspective?