Optimistic Company is evaluating the purchase of a new machine that costs $700,000, will have a CCA rate of 25%, an estimated useful life of 10 years and a $30,000 terminal disposal price.This piece of equipment would need a major overhaul at the end of 7 years that is expected to cost $40,000.Also, if this machine is purchased there will be a required increase in working capital of $60,000.This entire amount will be released at the end of the machine's useful life. The company's marginal tax rate is 34%.It is estimated that the machine will increase before tax profits by $225,000 annually.Optimistic Company requires a 18% after tax rate of return.Based on the above information, calculate the net present value of this option.