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please help 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
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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 $ 87,000 $ 10,500 $ 13,500 Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $430,000 $ 210,000 $ 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 123.1 and Exhibit 120.2. to determine the appropriate discount factor(s) using tables Required: Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.) Not present Valu XHIBIT 128-1 Present Value of St. Periods 4% 53 6 73 8% 9% 10% 11% 12% 3% 143 15% 16 17 185 19 205 215 22% 23% 24% 255 1 0962 0952 0943 0935 0926 0917 0909 0901 0.893 0.885 0877 08700862 0855 0847 08400833 0826 0820 081308060800 2 0925 0907 0890 0873 0857 0842 0.826 0812 0797 0783 0769 07560743 0731 0718 07060694 0683 0672 0661 06500640 3 0.889 0864 084008160794 0.772 0.751 0731 07120693 06750658 0641 062406090593 0.579 0564 0.551 0.537 05240512 4 0855 0823 07920763 07350708 0683 0659 0636 060 0592 0572 0552 0534 0.516 0.499 0482 04670451 0.437 0423 0.410 5 0822 0784 0747 073 0681 0.650 0621 0593 0567 0543 0519 0.497 0476 0456 0437 0.419 0402 0386 0370 0355 0341 0328 6 0790 0.746 0705 0666 0630 0596 0.564 0535 0507 0.480 0456 0.432 04100390 0370 0352 0335 0319 0.303 0289 0.275 0.262 7 0760 0711 0665 0.623 0583 0547 0513 0482 0452 0425 0400 0376 0354 0333 0314 0296 0 279 0 263 0249 0235 0222 0.210 8 0731 06770627 0.582 0540 0502 0.467 0434 0404 0376 0351 0327 0305 0285 0266 0249 0233 0218 0204 0191 01790168 9 07030645 0592 0544 0 500 0 460 0424 0391 0361 0333 03080284 0263 0243 0225 0209 0194 01800167 0155 0144 0134 10 0676 051 0558 0508 0463 0422_0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0162 019 0137 01260116 0107 11 0650 0585 0527 0475 0429 0388 0350 0.317 02870 261 0237 025 0195 0178 0162018 0135 012301120103 0.094 0086 12 0.625 0557 0497 044 0397 0356 0.319 0286 0.25% 0.231 0208 01870168 0152 03370124 011201020092 0083 0076 0.069 13 0601 0530 0469 04150368 0326 0290 0258 0229 0.2040182 0163 015 01300116 0104 0093 0.084 0075 0.068 0061 0.055 0571 0505 042 0388 0340 0299 0263 0232 02050181 0160 011 0125 0111 0099 0088 0078 0069 0052 0055 0049 0044 15 0555 0481 04170362 0315 0275 0239 0209 0183 0160034001230108 0095 0084 0074 0065 0057 0051 0045 00400035 15 0534 0458 034 0339 0292 0252 02180188 0163 01410123 01070093 0081 00710062 0054 0047 00420036 0032 0028 12 053 0636 037 0317 0270 0231 0198 0170 0146 0.125 0108 0093 000 0069 00600052 0045 0039 0034 0030 0025 0.023 18 0494 0446 0350 0296 0250 0212 01800153 0130 011100950081 0069 0059 0051 0044 0.038 0032 0028 0024 0.021 0018 19 0475 0396 0331 0277 0232 0194 0164 01380116 0098 000 007000600051 00430087 0031 0027 0023 0020 001001 20 0.456 0.17 0312 0258 02150178 0349 0124 0104 007 0073 0061 0051 00 003 0031 0026 0022 0.019 0016 005 0012 21 0419 0.250 0294 0242 0199 0164 013501120093 007 0064 005 004 0037 0031 0026 0022 00 0015 0013 0010009 22 0422 0342 0278 0226 0184 01500123 0101008) 0068 0056 0046 0038 0022 0026_0022 000 000 000 001 0009 0007 2 0406 0376 0262 0211 01700138 012 009 0074 0060 0049 0040 00 0027 0022 0.018 00150012 0010 0009 0007 0006 24 0.390 00 0207 0197 0158 0126 0102 0002 00660053 000 003 0028 0023 0019 0015 0010010 0000 0007 0006 0005 25 0.375 0295 023 014 016 01160092 0074 0.050 0047 0038 0.030 0.024 00200016 003 000 0009 0007 0006 0005 0004 25 0361 020220120150906 0084 0066 005200620033 0026 0021 0011 0010011 000 000 00060005 0000 0000 22 037 026 0207 0161 0125 0098 0076 000 0047 007 0079 002 001 005 000 0005 000 000 0005 0000 0000 0002 24 0 0255 09950150010090 009 0054 0042 003 0026 00200016 0012 000 000 0005 0005 0.004 000 0002 0.002 20 0221 020 01 02 03 002 0067 004 003 0029 002 001 00 01 000 0006 0.005 0000 000 0.002 0.002 0.002 30 021 014 01 000 0075 005 004 003 0026 0020 01 000 000 000 000 0000 0000 000 000 0002 0001 10 02010120097 00010060012002200150011 000 000 000 000 000 000 000 000 0000 0000 0000 0000 0000 XHIBIT 128-2 Prozent Value of an Annuity of S1 in Arrears: 41 10% Periods as 5% 6% 7 8% 93 10% 11% 123 13% 15% 15 17 18% 193 20% 213 22 23 24% 25 1 0962 0952 0943 0.935 0926 0917 0909 0901 0.893 0895 08770870 0862 0855 0847 0840 0833 0826 0820 081 0806 0800 2 1886 1859 1833 1808 183 1759 1736 1733 1690 1668 1647 1626 1605 1585 1566 1547 1528 1509 1492 1474 1457 1440 3 2775 2723 2673 2624 2577 2531 2487 2444 2402 2361 2322 2283 2246 2210 2174 2140 2105 2074 2042 2011 1981 1952 4 3630354634653387 3312 324031703102 3037 2974 2914 2855 2798 2743 2690 2639 2.589 2540 2494 2448 2404 2362 5 4452 4329 42124100 3.9933890 3.791 3696 3.605 3517 3433 3352 3274 31993.127 3058 2991 2926 2864 2803 2745 2689 6 5242 507649174767: 4623 4486 4355 4231 4111 3998 3889 3784 3685 3589 3498 3410 3326 3245 3167 3092 3.020 2958 1 60025786 5582 5389 5206 5033 4868 4712 4564 4423 4288 4160 4039 3922 3812 37063605 3508 3416 3327 3242 3161 8 6733 5.463 5210 5971 5747 5535 5335 5146 4968 47994639 4487 4344 4207 4078 3.954 3.837 3726 3.619 35181421 3329 9 74357108 6 802 6515 6 247 5995 5759 5537 5328 5132 4946 4772 4607 4451 4303 4163 4031 3905 3.786 36733.566 3.463 10 8111 772273607024 670 6418 615 5889 5650 5426 5 216 5019 4833 4659 4494 43394192 40543923 3.799 3682 3.571 11 8760 8306788774997139 6.805 64956 207 5938 56875453 5 234 5,029 48364656 4486 4327 4177 4035 3.902 3.776 3656 2 9385886383847943 7536 7561 6.844 6492 6194 591 5660 5421 5197 4988 4793 46114439 4278 4127 39853851 3725 13 99869394 8853 B3587904 1487 703 6750 64246122582 5583 542 51184910 4715 4533 462 4203 4053 39123780 14 10553 9899929587458247786735769826628 6302 6002 57245468 5229 50086 802 4611 4432 4265 48 3962 3824 15 11118 10 380 9702 9508 855980617606 7191 6811 5462 612 5847 5575 5.324 5092 4876 4675 4.489 43154153 4001 3859 16 11552 10838 10106 9417 88513137824 7379 69746604 6265 5954 5668 5:405 51624938 47304536 437 41894033 3887 17 12.3661127410477 9763 9122 8544 8022 754971206729 6.373 6047 5749 54755222 4990 47754576 4391 4219 4059 3.910 18 129 1690 10828 1005) 93728756 8201 270272506840 6.667 6128 588 5545 273 5033 48124608 4419 424340803928 19 131412085 1158033695048950 8365 7809 7366 6938 65506198 5877 5584 5315 5020 480 4635 4462 42624097 7912 20 340 12462 11700949818 9195 1963 7469 70255623 5259 5929 5628 5753 51014870 4657 4460427941103954 21 14029 1282111764836 07 9282 8649 R075 7562 112 6687 612 5973 5665 5.384 51274891 46754.476 6292 41213953 22 M451 1316) 2042 11061201 9M28m2 81767645 21206706359 5015696 5410 549 4909 4690 4488 4.302 480 3.970 22 M857 12200 1127207 580 880 82667718 7230 5792 5.399 60575332 55674925 42034499 431 43373976 24 15241 0799. 12.550 116030529 9707 985 8348 7784 728 6835 644 6073 5766 5651 512 4937 471 4507 418 433981 25 15622 M094 12762 17654 0675921 907784277330 673 6064 607 5766 5467 54721 51 47 1985 26 15902 375 01003110810929 961 Ram 6906 649 61545 5.40 520649564724520437841511988 27 160 161 1201 119050027 927 257854378096905 65 66 57 5492 5 21549644734524 4241541990 AM 11406201711051011630160270169616534 615 5810 5502 522497070 45284354957 1992 28 15141591 1227198 08022 7470 6551 66 5320 5510 522949740 451 452 453 10 1722 172 173 1749 1125 1024 BOSS 1700) 656 6177520 5517 5235 44 45 46 1905 193719504111211925 07977995824164555657549974045429 Step by Step Solution
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