Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 17%. After careful study, Oakmont estimated the following costs and revenues for the new product:

Exhibit 13B-2

Cost of equipment needed Working capital needed Overhaul of the equipment in two years Salvage value of the equipment in four years $ 190,000 $ 69,000 $ 6,00e $ 16,500 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $340,000 165,000 $ 79,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using tables