Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 15%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed $ 145,000 Working capital needed $ 63,000 Overhaul of the equipment in two years $ 9,500 Salvage value of the equipment in four years $ 13,500 Annual revenues and costs: Sales revenues $ 280,000 Variable expenses $ 135,000 Fixed out-of-pocket operating costs $ 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 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity.

Problem 11-14A Net Present Value Analysis [LO11-2] 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: Cost of equipment needed Working capital needed Overhaul o Salvage value of the equipment in four years $ 145,000 $ 63,000 $ 9,500 $ 13,500 f the equipment in two 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 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required Calculate the net present value of this investment opportunity. (Use the appropriate table to determine the discount factor(s).) et present value