1. Mwongozo Limited has approached you for advice on an equipment to be purchased for use in a five year project. The investment will involve an initial capital outlay of Shs. 1.4 million and the expected cash flows are given below:

Year	Cash Inflow Shs.	Cash Outflow Shs
1	800,000	65,000
2	750,000	80,000
3	900,000	50,000
4	1,200,000	55,000
5	1,100,000	70,000

The equipment is to be depreciated on a straight line basis over the duration of the project with a nil residual value. The cost of capital and the tax rate are 12% and 30% respectively.

Required

The net present value (NPV) of the investment