Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 15%. After careful study, Oakmont estimated the following costs and revenues for the new product:

Cost of equipment required	$	130,000
Working capital investment required	$	60,000
Overhaul of equipment in two years	$	8,000
Salvage value of equipment in four years	$	12,000
Annual revenues and costs:
Sales revenues	$	250,000
Variable expenses	$	120,000
Fixed out-of-pocket operating costs	$	70,000

The working capital needed for the project will be released at the end of four years for investment elsewhere.

Required:

1. Compute the net present value of the Project.

2. Should the project be accepted? Why or why not?