Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 18%. After careful study, Oakmont estimated the following costs and revenues for the new product:

Cost of equipment needed		$	220,000
Working capital needed		$	70,000
Overhaul of the equipment in two years		$	6,000
Salvage value of the equipment in four years		$	17,000
Annual revenues and costs:
Sales revenues		$	350,000
Variable expenses		$	170,000
Fixed out-of-pocket operating costs		$	80,000

When the project concludes in four years the working capital will be released for investment elsewhere within the company.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Exhibit 13B-1 - Present Value of $: 1/(1+r)^n - 18% 1: 0.847,2: 0.718, 3: 0.609, 4: 0.516

Exhibit 13B-2 - Present Value of Annuity of $1 in Arrears: 1/r[1 - 1/(1+r)^n] - 18% 1: 0.847,2: 1.566, 3: 2.174, 4: 2.690

Required:

Calculate the net present value of this investment opportunity. (Round discount factor(s) to 3 decimal places.)

***NOTE*** Answers I have come to on my own but have been wrong

-16,535.515

-16,536

-16,535.521

-25,302.926