I also have a pristine paratrooper. I paid about $250 for it a couple of years ago (actually I gave $500 for it and a like-new Russian SKS - and I always figured the Russian was worth a little more than the Chinese paratrooper). I also saw a couple of paratroopers at a gun show about a year ago. They were new in box with all accessories. The asking price was $245 each. I kind of wish I'd bought one. I also nearly bought one in a local store - they wanted $230 for it. It didn't appear used, although it wasn't NIB.
So, I think your friend got a handy, fun, reliable rifle, but the price sounds a little high to me. On the other hand, SKS prices have been going up, and I think the paratroopers are by far the handiest size, and they aren't very common from what I've seen, so maybe he didn't do too bad. I guess that once you get up to the $400 range I'd have to ask myself if I wouldn't rather have a Mini-30, a SAR-1, a CETME, or one of the Century FAL clones. Or save a little more and get a Garand or low-end AR. It is a lot easier for me to get excited about SKSs at $150 than at $400.
Doug