Bonita Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows: Year Net Cash...

Bonita Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows:

              Year                     Net Cash Flow

• $97,500


• 80,000


• 60,000


• 40,000

The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1,2,3, and 4 years is .909, .826, .751, and .683, respectively. Determine the net present value.