J. Renner Inc. has been offered a four-year contract to supply parts for a local business. The cash flow information for the project is detailed below:

Cost of equipment	$250,000
Working capital required	$20,000
Upgrading equipment in 2 years	$90,000
Salvage value of equipment in 4 years	$10,000
Annual net cash inflow	$120,000

The working capital would be released at the end of the contract in 4 years. The cost of capital is 14%. Compute the NPV of the project:

Cash Flow Description	Cash Flow	PV Factor	PV of Cash Flow
Cost of equipment
Working capital required
Upgrading equipment in 2 years
Salvage value of equipment in 4 years
Annual net cash inflow
Release of working capital
Total NPV