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(Ignore income taxes in this problem.) Jane Summers has just inherited $620,000 from her mother's estate. She is considering investing part of these funds in

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(Ignore income taxes in this problem.) Jane Summers has just inherited $620,000 from her mother's estate. She is considering investing part of these funds in a small catering business. She would need to purchase a delivery van and various equipment costing $102,000 to equip the business and another $50,400 for inventories and other working capital needs. Rent on the building used by the business will be $24,600 per year. Jane's marketing studies indicate that the annual cash inflow from the business will amount to $91,000. In addition to the building rent, other annual cash outflows for operating costs will amount to $30,600. Jane wants to operate the catering business for only six years. She estimates that the equipment could be sold at that time for about 10% of its original cost. Jane's required rate of return is 16%. Required Compute the net present value of this investment. (Input the amount as a positive value. Round "PV Factor" to 3 decimal places. Round your other intermediate calculations and final answers to the nearest whole dollar.) (Use Exhibit 11B-1, Exhibit 11B-2) Net present value

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