Given the following data, (round intermediate answers to four decimal places.) determine the net present value of the opportunity.

Account Amount Cost Prop WACC

Long-Term Liabilities $53,000 .095

Common Stock 229,000 .170

Preferred Stock 74,000 .115

Retained Earnings 535,000 .235

Flat-Mouth, Inc. is pondering whether to accept a 9-year contract. As the cost accountant, you will use the following data to make a determination.

Cost of the equipment $586,000

Working Capital Required $350,000 (will be released at the end of 9 yrs.)

Overhaul at end of 6 years $133,000

Salvage value $75,000

Annual Net Cash Flow

Sale of parts $1,484,324

Cost of parts 1,075,083

Other Costs 186,294