I am so confused by this and there is no real help for this question in class materials. I don't know where to begin.

Here is the question:

3. The estimated relevent annual expected cash flows (C1) associated with the puchase of the new factory in Largo are as follows:

Year C1 PV(C1)

1 ? ?

2 $291,000 $202,083

3 $191,000 $110,532

4 $306,000 $147,569

5 $424,000 $170,396

In Year 3,the estimated relevent annual expected cash flows represents funds used to pay operating expenses for subsequent years. All estimated relevent annual expected cash flows include a risk premium of 13 percent, which has already been applied to the cash flows above. Solve for cash flow for Year 1 based on your answer in Question 2. Then, solve for present value (PV) for Year 1. What is the total of present value for all five years? Should the factory be purchased? Why or why not?

ANSWER FOR Q2 is NETCASH FLOW: $393,000

Can anyone help me with this?