Darren Mack owns the"Gas n'Go" convenience store and gas station. After hearing a marketinglecture, he realizes that it might be possible to draw more customers to hishigh-margin convenience store by selling his gasoline at a lower price.However, the"Gas n'Go' is unable to qualify for volume discounts on its gasolinepurchases, and therefore cannot sell gasoline for profit if the price is lowered.

Each new pump will cost$120,000 toinstall, but will increase customer traffic in the store by 14,000 customers per year.Also, because the"Gas n'Go" would be selling its gasoline at noprofit, Darren plans on increasing the profit margin on convenience store items incrementally over the next five years. Assume a discount rate of 7 percent. The projected convenience store sales per customer and the projected profit margin for the next five years are given in the table below.

Year Projected Convenience Store Sales Per Customer Projected Profit Margin

1 $4 20%

2 $5.50 25%

3 $7 30%

4 $9 35%

5 $10 40%

What is the NPV of the next five years of cash flows if Darren hadfivenew pumpsinstalled?