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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 15%. After careful study,

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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 15%. After careful study, Oakmont estimated the following costs and revenues for the new product $ 145,000 $ 63,000 $ 9,500 $ 13,500 Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 280,000 $ 135,000 $ 73,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables, Required: Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.) Not present value EXHIBIT 140-1 Present Value of State 11 Periods 45% 0% 8 94 10% 12% 13% 145 15% 15% 17 18% 19% 20% 215 225 226 245 255 1 0.962 0.952 0943 0935 0926 0.917 0.909 0.901 0893 0.885 0.877 0370 0.362 0855 0347 0340 0833 0.826 0.820 0.80 0006 0.800 2 0925 0907 0.890 0.873 0.857 0.842 0.826 0812 0.797 0783 0.769 0756 0743 0731 0718 07060694 0683 0672 0.661 0.650 0.640 3 0.889 08640340 0.8160794 0772 0751 0.731 0712 0.690 0.675 0658 0641 0624 06090593 0.579 0.564 0.551 0537 0.524 0.512 4 0855 0.323 0.792 0.763 07350.708 0683 0659 0.636 06130592 0.572 0552 0534 0.54 0.499 0432 046704510437 0423 0.410 5 0822 0.784 0747 0713 0.681 0650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0456 0437 0.419 0402 0.386 0.370 0.355 0.341 0.328 6 0790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0507 0.480 0.456 0.432 0.10 0.390 0.370 0.352 0.335 0319 0.303 0.289 0275 0.262 7 0.750 0.711 0.665 0.623 0583 0.5470513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0314 0.296 0279 0.263 0249 0.235 0.222 0.210 8 0.731 0677 0627 0582 0.540 0.502 04670434 0404 0.376 0.351 0327 0.305 0.285 0.266 0.249 0233 0.21 0.204 0191 0.79 0.168 9 07030645 0.592 0544 0.500 0.460 0.424 0.391 0.361 0.333 0308 0284 0.263 0243 0225 0209 0194 01800167 0155 0144 0134 10 0676 0614 0558 0.508 0463 0.422 0.396 0.352 0322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 01620149 0137 0.126 0.716 0107 11 0.650 0.585 0.527 0.475 0.429 0.388 03500317 02870.261 0237 0.21501950178 0.962 0.148 0139 0.123 0.112 0103 0.094 0.086 12 0625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0257 0.231 0.208 0187 0.368 0152 0.137 0.124 0112 0.1020.092 0.003 0.076 0.069 0.601 0530 0.469 04150368 0.326 0290 0.250 0.229 0.2040182 0163 0.545 0130 0.116 0104 0.090 0.054 0.075 0.068 0.061 0.055 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0205 0.181 0160 0541 0.125 0.1 0.099 0.088 0073 0.069 0.062 0.055 0.0490044 15 0.555 0.481 0.407 0.362 0.315 0.275 0.239 0.209 0.183 0160014001230108 0.095 0.084 0.074 0.005 0.057 0.051 0.045 0.040 0.035 16 0534 0.458 0.394 0.339 0.292 0.252 0.21801880.163 0.141 0123 0.107 0.093 0.001 0.071 0.062 0.054 0.047 0.042 0.036 0032 0.028 17 0.53 0.436 0371 0.317 0.270 0.231 0198 0.1200145 0.125 0.108 0.093 0.080 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.026 0.023 18 0.494 0.416 0.350 0296 0.250 0212 01800153 0.130 011 0.095 0.081 0.069 0059 0.051 0044 0.038 0.0320028 0.024 0.021 0.010 19 0.475 0.396 0.331 0.277 0232 0194 0.1540138 0.116 0098 0.003 0.07000600051 0.043 0.037 0.031 0.027 0023 0.020 0.017 0014 20 0.456 0377 0312 0.258 02150173 0149 0124 0101 0.087 0073 0.061 0.051 0043 0.037 0.031 0.026 0.022 0.019 0.016 0014 0012 21 0.439 0.359 0.294 0242 0199 0164 0.1350112 0.093 0.077 0064 0.053 0.044 0.037 0.031 0026 0.022 0.019 0015 0.013 0.011 0.009 22 0.422 0.342 02780226 0.134 015001230101 0.003 0.068 0.050 0045 0038 0032 0.026 0022 0.018 0.0150013 0.011 0.0090007 23 0.400 0.326 0.262 0.211 0.170 0138 0.112 0.091 0.074 0060 0049 0.040 0.003 0027 0.022 0.018 0.015 0012 0.00 0.00 0.007 0.006 24 0.390 0.310 0247 0197 0158 0126 0102 0082 0.006 0.053 0043 0.035 0.028 0023 0.019 0,015 0,013 0010 0008 0.007 0.006 0.005 25 0.375 0.295 0 233 0.184 0166 0116 0.092 0.074 0059 0047 0.038 0030 0024 0020 0.0160.013 0010 0.009 0007 0.005 0,005 0,004 26 0361 0281 0220 0172 01350106 0084 0.056 0.053 0042 0.033 0.025 0.021 0.017 0.014 0011 0009 0.002 0.006 0.005 0.004 0.000 27 0.3470268 02070561 0125 0.098 0.076 0060 0047 0037 0.029 0.023 0.018 0010011 0009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0255 01960.150 0.116 0.090 0.009 0.054 0042 0.033 0026 0020 0.016 0.012 0.0100008 0006 0.005 0.004 0.003 0002 0002 29 0.321 0243 0185 0.141 0.107 0082 0063 0018 0.037 0029 0022 0.017 0.014 0011 0000 0006 0.005 0004 0.003 0.002 0.002 0.002 30 0.308 0231 0174 0.01 0099 0075 0.057 0.014 0.033 0.026 0020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0002 0.001 40 0208 0542 0097 0.067 0.046 0032 0.022 0015 0011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 DOT 4-2 recent Value of an Arruilty of St in Arvere - Periods 1 2 3 4 5 2 8 90 11 12 14 15 10 17 10 19 20 45 5 07 98 10% 113 121 145 15% 90 17% 18 19 20% 21% 22 23 24 25 09620.952 0943 09350926 0917 0909 0.901 0893 0.305 0877 0.870 0.862 0.855 0347 0.840 0300 0826 0820 000 0000 0800 1566 1859 1833 1808 1783 1759 1736 170 1.690 1668 1647 1626 1005 1505 1506 1547 1528 1509 1492 1474 1457 1440 2775 2.723 2673 2.624 2577 2531 2487 2.444 2402 2.361 2322 2200 2246 2210 2174 2.540 2100 2074 2012 2011 1981 1952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3102 3037 2974 2914 2.855 2798 2.343 2.690 2639 2589 2.540 2494 2.448 24042362 4.452 4329 4.212 4.100 1993 3.090 3.791 3696 3.6052517 3.433 3352 3.274 3199 3.127 3058 2.991 2925 2.364 2.803 2745 2.689 5.242 5.075 4917 4767 4623 4.486 4.355 4.231 4. 3.9983309 2734 3685 3.589 3.490 3410 3326 32453167 3.092 1020 2951 0.002 5.790 5582 5389 5 206 5033 4.868 4712 4564 4423 4288 4560 4.039 3.922 3.812 3706 1605 3.508 349 3327 3242 3161 6733 6463 0.210 5971 5747 5.535 5 3355146 4.908 4799 4.6394437 4344 4207 4070 3.954 3.837 3726 3619 3.58 3.4213329 7435 7100 6.802 6.595 6247 5995 57595537 5.328 5.02 494647724607 4.451 4300 4163 4031 3905 376 36733566 3.463 8.11 2722 7360 7024 6.710 6.450 6545 5.899 5650 5.426 5216 5019 4833 4.659 4494 43394192 4.05 3.92 3.799 3.682 3.571 8.760 8.306 7887 7499 7139 6.305 6.495 6207 5938 5.687 5.453 5 234 5.029 48364656 4406 4327 4177 40053902 3770 3.658 9.385 8963 8.384 7943 7536 7161 6.814 6.492 6.194 5918 5600 5.421 5197 4988 47934611 4439 427 4127 3.9853651 3725 9.986 9.394 3.153 8.358 7904 7487 2103 6750 6.424 612258425583 5.342 5713 4.910 4715 45334362 4.203 4053 3.912 3.780 10563 9899 9.295 8.745 8244 7786 73676.962 6628 6.302 6.002 5724 5.468 5229 5.000 4.002 4611 4432 4265 4108 3.962 3.024 11119 103809712 9.108 3.559 8.001 76067191 6.01 6462 6142 5.847 5575 5324 5.092 4876 4675 4.409 4.315 4153 4.001 3.859 11652 10838 10.500 9.407 8.851 8.313 7824 7379 6974 6.604 6 265 5954 5668 5.405 51624938 4730 4536 4357 4189 4.033 337 12.166 16274 10477 9763 9.122 8544 802275497120 6729 6.373 6047 5749 5.475 5.222 4.990 4775 4576 4.391 4210 4059 3910 12659 1690 10.828100599372 0756 8201 7702 7250 6840 6.467 6128 5.818 5534 5.2735032 48124608 4419 42434000 3.928 00341208511158 10.336 9604 8.950 3.365 783973666.933 6.556 6198 5877 5584 5316 5070 4847 4635 442 4263 4097 3942 13.500 12.40211470 10.504 9.818 9129 9.55 2963 7469 7025 6.623 6259 5.929 5620 5353 5101 4.870 4657 446042294110 3.954 14.029 12.621 11764 10006 1000 9292 8649 80757502 702 6607 6.312 5973 5665 5.304 5127 4891 4675 4.476 4292 4121 1960 14.451 13:163 2042 1061 10 201 9.442 3772 3176 7845 7170 6.7436359 6011 5696 5410 55494909 4890 4480 4302 4130 1970 14 957 34991230371272 10.371 9.500 39938266 77 72308792 6.799 6044 5723 5.432 5167 4925 4700 4499 4311 4137 3.925 15247 0.799 12.550 145910529 9707 8.985 343 7784 7283 6.835 604 6.073 5.746 5.451 5152 4.937 470 4507 418 4143 1901 15 622 096 1278311654 106759873 9077 8.422 7543 7330 6.873 6.464 0975786 5.467 519549484721 25423 4547 3905 15.983 14.375 0.003 126 0310 9929 9161 8431 2896 2372 6.906 6491 6108 5733 5.430 5.206 4 956 4728 4520 4128 4151 3998 16 330 160 211 21967 10.905 10.0279237 8548 2943 7409 6.905 6.54 6136 57985492 5215 4.954 4734 4.524 4332 4154 1990 16.663 1499334061237 11051 9.307 3602 7984 7441 69616534 6152 5.810 5502 52234970 4739 4528 47354157 1992 16904 15141 591 2.278 11:58 10.196 9370 8.650 8022 7470 6.963 6.551 6166 5.820 5.510 5229 49754743 4531 4137 4159 2.994 17.292 15 372 3765 12.409 11250 10.274 9.4278694 8.055 7496706365066177 5829 5597 5235 4979 474 4534 439 440 3995 7379317159 15046 23321925 10.757 9719 8951 8244 7634 7105 6.642 6233 58715.543 5258 4997 4700 4544 43474766 999 21 22 22 24 25 26 27 20 29 30 40 10116

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