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:

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Cost of equipment needed: $130,000

Working Capital needed: $60,000

Overhaul of the equipment in two years: $8,000

Salvage value of the 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

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

Questions:

Calculate the Net present value of the investment opportunity, calculate the IRR (internal rate of return), the Simple Rate of Return, and the project profitability index.