Chapter 13: Lander Company's has an opportunity to pursue a capital budgeting project with a five-year time horizon.

Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: Cost of equipment needed $320,000 Working capital needed 69,000 22,500 overhaul of the equipment in two years Annual revenues and costs: Sales revenues $440,000 $225,000 Variable expenses 98,000 Fixed out-of-pocket operating costs The piece of equipment mentioned above has a useful life of five years and zero salvage value. Lander uses straight-line depreciation for financial reporting and tax purposes. The company's tax rate is 40% and its after-tax cost of capital is 11%. When the project concludes in five years the working capital will be released for investment elsewhere within the company. click here to view Exhibit 13B-1 and Exhibit B-2, to determine the appropriate discount factor(s) using tables. Required: amounts should be indicated by Calculate the net present value of this investment opportunity. (Negative a sign. Round discount factor(s) decimal places.) Net present value