Answer:
-$419.41
Explanation:
The computation is shown below:
Year Cash flows Discount factor Present value
0 -$196,000 Â Â Â Â Â Â Â Â 1 Â Â Â Â Â Â Â Â Â Â Â Â Â -$196,000 Â (A)
1 $45,000 Â Â Â Â Â Â Â 0.9090909091 Â Â Â $40,909.09
2 $60,000 Â Â Â Â Â Â Â 0.826446281 Â Â Â Â $49,586.78
3 $54,000 Â Â Â Â Â Â Â 0.7513148009 Â Â Â Â Â $40,571.00
4 -$51,000 Â Â Â Â Â Â Â 0.6830134554 Â Â Â Â -$34,833.69
5 $160,000 Â Â Â Â Â Â 0.6209213231 Â Â Â Â Â $99,347.41
Total present value                    $195,580.59  (B)
Net present value                    -$419.41  (A - B)
The discount factor is computed below:
= (1 + interest rate)^number of years