An investment of current $130,000 is made and, according to calculations, will generate the indicated savings in the following years: Year Savings 1 $35,000 2 $50,000 3 $45,000 4 $25,000 5 $15,000 What is the net result of this investment in present value terms if it requires a 9% return on your investment?

1. Calculate the present value for each of the cash flows from years 1 to 5:

- Year 1:

PV_1 = \frac{Cash Flow_1}{(1 + 0.09)^1}

- Year 2:

PV_2 = \frac{Cash Flow_2}{(1 + 0.09)^2}

- Year 3:

PV_3 = \frac{Cash Flow_3}{(1 + 0.09)^3}

- Year 4:

PV_4 = \frac{Cash Flow_4}{(1 + 0.09)^4}

- Year 5:

PV_5 = \frac{Cash Flow_5}{(1 + 0.09)^5}

2. Sum up the present values of all cash flows:

\text{Sum of PVs} = PV_1 + PV_2 + PV_3 + PV_4 + PV_5

3. Subtract the initial investment from the sum of these discounted values to get the NPV:

NPV = \text{Sum of PVs} - \text{Initial Investment}

Therefore,

NPV = 6,401.95