Niekro Movie Theaters plans to buy projection equipment costing $880,000. In connection with this transaction, old equipment having a book value of $140,000 will be sold for $210,000. Annual cash flow returns from this new investment are estimated at $370,000 before taxes. Depreciation on the new equipment will be $88,000 each year for the next 10 years. No salvage value is expected on this new equipment. No further depreciation can be taken on the old equipment that will be sold. The income tax rate is 30 percent.

Using a discount rate of 20 percent, compute the NPV of the new investment: $ ______________