Oakmont company has the opportunity to manufacture and sell a new product for a four-year period. the companies discount rate is 15%. after a careful study Oakmont estimated the following cost and revenues for new products

Cost of equip needed: 130000

working capital needed: 60000

overhaul of the equipment in 2 years:8000

salvage value of equipment in 4 years: 12000

annual revenues and costs:

sales rev: 250000

variable expense: 120000

fixed out of pocket operating exp: 70000

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

CALCULATE THE NET PRESENT VALUE OF THIS INVESTMENT OPPORTUNITY

-tell which table is used- single payment or annuity, the interest rate, and number of periods