$($Ignore income taves in this problem$)$ Steph Lymn is considering starting a small catering business. She woutd need to purchase a delivery van and various equipment costing $$155,000$ to equip the business and another $$60,000$ for inventories and other working capital needs. Rent for the building used by the business will be $$35,000$ per year. Steph's marketing studies indicate that the annual cash inflow from the business will amount to $$120,000.$ In addition to the building rent, annual cash outflow for operating costs will amount to $$40,000.$ Steph wants to operate the catering business for only six years She estimates that the equipment could be sold at that time for $4\%$ of its ofiginal cost. Steph uses a $16\%$ discount rate.

Required:

Compute the net present value of this investment.

Would you advise Steph to make this investment?