A machine has a five-year life and costs $280,000. It has an annual pre-tax operating cost of $95,000 in the first year. The operating costs are expected to increase at the rate of 10% per year over the life of the machine. The machine has a zero salvage value and belongs to CCA class 22 with a depreciation rate of 45%. The corporate tax rate is 40% and the appropriate discount rate is 12%. What is the NPV of the machine?

Please explain step by step with the necessary formulas.