You friend has developed a new design of mouse trap that he said works better than any other mouse trap available. He needs money for production, so he has asked you to invest in the new venture. He is offering you a percentage of the profits for the next seven years, and has estimated your share of the cash flows in Year 3 to be $55,000, increasing by $20,000 per year through Year 7 (there will be no cash flows in Years 1 or 2). You have decided this is a pretty risky proposition, so you are requiring a return of 16% in order to invest. What is the most you should be willing to invest in this project?