7.18 Calculate the net present value of this investment opportunity.

PROBLEM 7-18 Net Present Value Analysis L07-2 Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 15%. 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 Annual revenues and costs: Sales revenues $130.000 $60.000 $8,000 $12,000 Variable expenses.. $250,000 $120,000 $70,000 Fixed out-of-pocket operating costs chapter 7 When the project concludes in four years the working capital will be released to elsewhere within the company Required: Calculate the nel present value of this investment opportunity DOA