Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period.

The company's discount rate is 20%. After careful study, Oakmont estimated the following costs and revenues for the new product:

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

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