Elijah's Company is considering purchasing new equipment costing $300,000. Elijah's management has estimated that the equipment will generate cash inflows as follows:

Year 1

$150,000

Year 2

$100,000

Year 3

$125,000

Year 4

$125,000

Year 5

$70,000

Using the P.V. Table below, calculate the net present value of the investment project using a discount rate of 7%.

Present Value of $1

leav 5 0 7% 8% 9% 10% 0.952 0.943 0.935 0.926 0.917 0.909 0.907 0.890 0.873 0.857 0.842 0.826 2 0.864 0.840 0.816 0.794 0.772 0.75 0.823 0.792 0.763 0.735 0.708 0.683 3 4 5 0.784 0.747 0.73 0.681 0.650 0.621