J.B. Enterprises is considering the purchase of new equipment with a cost of $1,000,000. If the equipment is purchased, the incremental net cash flows are expected to be $300,000 per year for five years. The net cash flows already reflect the depreciation of the equipment and the company's 40% tax rate. However, there are liability risks associated with the use of this product. The board of directors estimates a "cost of worry" of $15,000 per year. Calculate the net present value of this project incorporating the cost of worry if the company's cost of capital is 12%. (Show all work to receive full credit.)