Ann got a 30-year FRM with annual payments equal to $12,000.

After 2 years of payments, Ann will refinance the balance into a 28-year FRM with annual payments equal to $10,000.

Refinancing will cost Ann $5,500.

Ann will prepay the new loan 3 years after refinancing. She will save $4,000 on her loan balance when she prepays.

Find the Net Present Value for Anns refinancing decision if her annual discount rate is 10%.