?

5 value: 2.14 points Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 18% After careful study, Oakmont estimated the following costs and revenues for the new product Cost of equipment needed Working capital needed Overhaul of the equipment in two years Salvage value of the equipment in four years $270,000 S 90,000 S 9,000 S 14,500 Annual revenues and costs Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 450,000 S 220,000 S 90,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company Click here to view Exhibit 11B-1 and Exhibit 118-2. to determine the appropriate discount factor s) using tables Required: Calculate the net present value of this investment opportunity, (Use the appropriate table to determine the discount factor(s).)