Kevin Rupert is the CFO of Rexdale Classics Parts, a manufacturer of parts for classic automobiles. Kevin is considering the purchase of equipment which will allow the firm to stamp out auto parts. The equipment costs $500,000. The project is expected to produce after-tax cash flows of $120,000 in the first year, and increase by $20,000 annually; the after-tax cash flow in year 5 will reach $200,000. Liquidation of the equipment will net the firm $60,000 in cash at the end of five years, making the total cash flow in year five $260,000.

Assume the required return is 15%. What is the project's net present value?