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Ch12-3Hello can you help me with this question please! ne Ch. 12 Homework O a ezto.mheducation.com Saved Help Save Problem 12-18 Net Present Value Analysis
Ch12-3Hello can you help me with this question please!
Ch. 12 Homework O a ezto.mheducation.com Saved Help Save Problem 12-18 Net Present Value Analysis [L012-2] 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: 2 points eBook print O References Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four Annual revenues and costs: Sales revenues Variable expenses Fixed outofpocket operating costs years $ 140, 62, 9, 13, o s 270, $ 130, $ 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 12B-1 and Exhibit 12B-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.) e presen va ue
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