Someone needs to explain to me how they got (2.589) on the bottom right before solving the answer. PLS HELP and explain to me why and how all the math is done in this formula because I'm confused. I need to be able to explain this. The question and the answer to the question are posted below. Please explain to me how the book arrives at the answer.

Nebraska Co. plans to pursue a project in Argentina that will generate revenue of 10 million Argentine pesos (AP) at the end of each of the next 4 years. It will have to pay operating expenses of AP3 million per year. The Argentine government will charge a 30 percent tax rate on profits. All after-tax profits each year will be remitted to the U.S. parent and no additional taxes are owed. The spot rate of the AP is presently $.20. The AP is expected to depreciate by 10 percent each year for the next 4 years. The salvage value of the assets will be worth AP40 million in 4 years after capital gains taxes are paid. The initial investment will require $12 million, half of which will be in the form of equity from the U.S. parent, and half of which will come from borrowed funds. Nebraska will borrow the funds in Argentine pesos. The annual interest rate on the funds borrowed is 14 percent. Annual interest (and zero principal) is paid on the debt at the end of each year, and the interest payments can be deducted before determining the tax owed to the Argentine government. The entire principal of the loan will be paid at the end of year 4. Nebraska requires a rate of return of at least 20 percent on its invested equity for this project to be worthwhile. Determine the NPV of this project. Should Nebraska pursue the project?

The given information is summarized as: 10 = $12million 1 = AP 60 million ( -x12million) 0.20 k = 0.20 CF4 = Revenue - Operating expenses Interest - tax = AP 10 million - AP 3million - AP 4.2million - AP 0.84million = AP1.96 million SV4 = AP 40million Net present value is determined by consolidating the discounted cash flows for each period and subtracting the initial investment. NPV = -10 + 3 CF (1+k) (1+k)" SV Where 10 = initial outlay (investment) CF7 = cash flow in period t SVA salvage value k= required rate of return on the project n = lifetime of the project (number of periods) + + + 1.96 1.96 1.96 1.96 40 NPV=-60+ + (1+0.20) (1+0.20) (1+0.20)(1+0.20)*(1+0.20) = -60 + (1.96 ~ 2.589) + (40 x 0.482) = -35.646 Nebraska should not pursue the project because the NPV is negative