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Oakmont Company has an opportunity to manufacture and sell a new product for a four - year period. The company's discount rate is 1 8
Oakmont Company has an opportunity to manufacture and sell a new product for a fouryear period. The company's discount rate is
After careful study, Oakmont estimated the following costs and revenues for the new product:
When the project concludes in four years the working capital will be released for investment elsewhere within the company.
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using tables. Use the tables to get
your discount factors. The linked tables are the same tables as the ones in your course packet. If you calculate discount factors
using Excel or a financial calculator, your answer may be different enough due to rounding that the system marks it wrong.
Required:
Calculate the net present value of this investment opportunity. Round your final answer to the nearest whole dollar amount.
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