Ann got a 30 year Fully Amortizing FRM for $600,000 at an annual interest rate of 5% compounded annually with annual payments. After 2 years of payments, Ann will refinance the balance into a 28 year Fully Amortizing FRM at an annual interest rate of 3.5% compounded annually with annual payments. Refinancing will cost Ann 1.25 points plus $1250 in closing costs. Ann will prepay the new loan 3 years after refinancing.

The Annual payment before refinancing = 3903.09

The loan balance after 2 years = 581486.73

Annual payment after refinancing = 32913.69

The balance saving of a lower new loan balance= 7631.37

The cost of refinance= 8518.58

A. What's the final year total Cash Flow in the NPV formula for Anns refinancing decision (positive number)??

Needs to be correct by the cent!