You are to analyze the feasibility of purchasing a new piece of equipment for your firm. The equipment falls under the MACRS five-year class. The initial investment is $420,000. Over the next six years, the following earnings before depreciation and taxes (EBDT) will be generated from using this equipment: Year EBDT$

1 150,000

2 80,000

3 60,000

4 55,000

5 55,000

6 55,000

The discount rate is 11% and the company is in the 40 percent tax bracket. There is no salvage value at the end of year 6. What is the NPV of this investment?