A $400,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
Year Net Cash Flow
1.................................$200,000
2...................................150,000
3....................................90,000
4....................................80,000
The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and 0.636, respectively.
Determine the net present value.