Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted.

Year 0: ($1,250,000)

Year 1: $100,000

Year 2: $400,000

Year 3: $400,000

Year 4: $200,000

Year 5: $200,000

Year 6: $300,000

Year 7: $100,000

Suppose that the appropriate discount rate for this project is 11.9%, compounded annually. Calculate the net present value for this proposed project.