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Oakmont Companyr has an opportunity to manufacture and sell a new product for a fouryear period. The company's discount rate is 16% After careful study,
Oakmont Companyr has an opportunity to manufacture and sell a new product for a fouryear period. The company's discount rate is 16% After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed 5 258,300 l.ilorking capital needed 5 82,800 Overhaul of the equipment in year two $ 3,800 Salvage value of the equipment in four years 5 11,860 Annual revenues and costs: Sales revenues 5 388,800 Variable expenses 5 185,800 Fixed outofpocket operating costs 5 83,860 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Required: Calculate the net present value ofthis investment opportunity. {Round your nal answer to the nearest whole dollar amount.) _:I
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