Answer:
$324,175.20
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The initial investment is $516,000
And the present value would be
= Annual year cash inflows × PVIFA for five years at 9%
= $216,000 × 3.8897
= $840,175.20
Refer to the PVIFA table
Now the net present value would be
= $840,175.20 - $516,000
= $324,175.20
