C73

Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 14%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed $140,000 Working capital needed $ 62,000 Overhaul of the equipment in year $ 9,000 two Salvage value of the equipment in four years $ 13,000 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $270,000 $ 130,000 $ 72,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.)