Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.09 million. The lathe will cost $30,200 to run, will save the firm $132,900 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25%. Ilana has many other assets in this asset class. The lathe is expected to have a 11-year life with a salvage value of $91,000. The actual market value of the lathe at that time will also be $91,000. The discount rate is 7% and the corporate tax rate is 35%.

What is the NPV of buying the new lathe? (Round your answer to the nearest cent.)

NPV $