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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

Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 18% and it estimated the following costs and revenues for the new product:
Cost of equipment needed $ 270,000
Working capital needed $ 90,000
Overhaul of the equipment in two years $ 9,000
Salvage value of the equipment in four years $ 14,500
Annual revenues and costs:
Sales revenues $ 450,000
Variable expenses $ 220,000
Fixed out-of-pocket operating costs $ 90,000
When the project concludes in four years, the working capital will be released for investment elsewhere within the company.
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is
18% and it 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 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.
Required:
Calculate the net present value of this investment opportunity.
Note: Round your final answer to the nearest whole dollar amount.
Net present value
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