Sunrise Corporation is evaluating a capital expenditure project to upgrade its manufacturing equipment. The project requires an initial investment of $1,000,000 and is expected to generate annual cash flows of $300,000 for the next five years. If the company's cost of capital is 12%, calculate the net present value (NPV) of the project and advise Sunrise Corporation on whether to proceed.

Calculate the net present value (NPV) of the capital expenditure project and provide a recommendation to Sunrise Corporation.