Financial Statement Analysis.

Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted.

• Year 0: ($1,250,000)
• Year 1: $100,000
• Year 2: $400,000
• Year 3: $400,000
• Year 4: $200,000
• Year 5: $200,000
• Year 6: $300,000
• Year 7: $100,000

Suppose that the appropriate discount rate for this project is 10.2%, compounded annually.

Calculate the net present value for this proposed project.

Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar. If the NPV is negative, include a minus sign. Do not type the $ symbol.