The problem is not the 200 bucks, but the fact that when you start to spend and realize how expensive parts are is when you realize that the restoration will cost you twice the time and three times the money you calculated first. Lack of knowledge and time can also be discouraging, I agree with that. But even in case of lack of knowledge, if the bike was given for free he will not be afraid of tinkering, as the bike was already in a sorry state so the chances of putting it worst are scarce... ;-), and if his lack of knowledge he ruins something he won't lost any money. He have nothing to lose with that bike but his time and the money put in new/used parts. It's important to assess if the bike is recoverable before starting to spend money.
Raul