A local farmer has come to you to for help in analyzing a possible investment. The farmer has been talking with a new fertilizer plant and has struck up a deal with the plant if he is able to buy the fertilizer in bulk. The farmer currently has no facilities to store the fertilizer.

The farmer has received a bid of $335,600 for building a facility to store the fertilizer. The building requires steady ventilation and routine maintenance that the farmer has estimated to be $41,500 annually. The farmer also estimates that he will save $88,000 a year in fertilizer expenses (treat this as operating revenue). The building will have a $165,000 terminal value at the end of four years. The farmer requires a 6.5% return on capital. What is the NPV?