Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 18%. After careful study, Oakmont estimated the following costs and revenues for the new product:

Cost of equipment needed		$	260,000
Working capital needed		$	87,000
Overhaul of the equipment in two years		$	10,500
Salvage value of the equipment in four years		$	13,500
Annual revenues and costs:
Sales revenues		$	430,000
Variable expenses		$	210,000
Fixed out-of-pocket operating costs		$	88,000

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

Click here to view Exhibit 13B-1 and Exhibit 13B-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%. After careful study, Oakmont estimated the following costs and revenues for the new product: $260,000 Cost of equipment needed 87,000 Working capital needed 10,500 Overhaul of the equipment in two years 13,500 Salvage value of the equipment in four years Annual revenues and costs: 430,000 Sales revenues $210,000 Variable expenses Fixed out-of-pocket operating costs 88,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity. (Round discount factor(s) to 3 decimal places Net present value