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Problem 12-18 Net Present Value Analysis (L012-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's

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Problem 12-18 Net Present Value Analysis (L012-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate it 16%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed Working capital needed Overhaul of the equipment in year two Salvage value of the equipment in four years $ 170,000 $ 68,000 $ 12,000 $ 16,000 Annual revenues and costs Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 330,000 $ 160,000 $ 78,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 12B and Exhibit 12B-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.) Net present value Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0962 0952 093 0935 0.926 0917 09090901 0893 0885 087708700862 0855 08470840 0833 0826 0820 0813 0.805 0800 2 0925 0907 0890 0873 0.857 0812 0826 0.812 0.797 0783 0769 0756 0743 0731 0718 0706 0694 0683 0672 0661 0650 0640 3 0889 0.864 0.840 081 0794 072 0751 0.731 0720693 0675 0658 0641 0.624 0609 0.593 0.579 0564 0.551 0537 052 0512 4 0855 0.823 0792 0.763 0735 0708 0683 0.659 0636 0613 0.592 0.572 0.552 0534 0.516 0.499 0.482 0.467 0451 0.437 0.423 0410 5 0822 0784 0747 0.713 0681 0650 0621 0.593 0.567 0543 0.519 0497 0.476 0.456 0437 0.419 0402 0.386 0.370 0.355 0.341 0.328 6 0.7900746 0705 0666 0630 0596 0564 0535 0507 0480 0456 0432 0410 0390 0.370 0352 0335 0.319 0.303 0289 0275 0262 7 0760 071 0665 0623 0583 0507 0513 0482 0452 0425 0.400 036 0354 0.333 0.31 0296 0279 0263 0249 0235 0272 0210 8 0731 0.677 0627 0582 0540 0.502 0.467 0434 0.404 0376 0351 0327 0.305 0285 0.266 0249 0233 0218 0204 0191 01790168 9 07030645 0.592 0544 0.500 0450 0424 0.391 0.351 0.333 0.308 0284 0263 0243 0225 0209 0194 01800167 0155 0.14 0134 10 0676 0.614 0.558 0508 0463 0422 0386 0352 0322 0.295 0 270 0247 0227 0208 0191 0176 01620149 0137 0126 0116 0107 11 0650 0.585 0.527 0.475 0429 0388 0350 0.317 02870 261 0237 026 01950178 0162 0.148 0135 012301120103 0.094 0086 120625 0557 0.497 0.444 0397 0.356 0.319 0286 0257 0231 0208 0187 0168 0152 0131 0124 01120102 0092 0083 0076 0.069 1 0601 0530 0.469 0415 0368 0326 0290 0258 0229 0204 0182 033 0145 0130 0116 0104 0093 0084 0075 0068 0.061 0055 1 0577 0505 0.42 0.388 0340 0299 0 263 0232 0205 0181 0160 011 0125 0110099 0088 0078 0069 0062 0055 0049 0.044 15 0555 0481 0.417 0.362 0.315 0275 0239 0209 0183 016001400123 0108 0.095 0084 0.074 0.065 0057 0051 0045 0040 0035 16 0534 0458 0.394 0339292 0252 021801880163 0141 0123 0102 0093 0081 007 0062 0054 0047 0042 0.036 0032 0028 1 0513 0436 0371 03170270 0231 0198 01700146 0125 0108 0093 0.080 0069 00600052 0045 0039 0034 0030 0026 0023 18 0.494 0 4160350 0296 0 250 0 2120180 0153 010 01110095 0081 0069 0059 00510044 0038 0032 0028 0024 0.021 0018 190475 0.396 0331 0277 0232 0.194 0164 0138 0.116 0.098 0083 0070 0.060 0.051 003 0.037 0.031 0.027 0.023 0.020 000 000 20 0.456 0377 0312 0258 02150178 019 0124 0104 0087 0073 0061 0051 0043 0037 0031 0026 00220019 0016 0054 0.012 21 0439 0359 0294 0242 0199 0164 013501120093 0077 0064 0053 0044 0037 0031 0,026 0022 0018 0015003 0011 0009 22 0422 0342 0278 0226 0184 015001230101 0083 0068 0056 00460038 0032 0026 0022 00100150013 001 0009 0007 23 0406 0326 0262 02110170 013801120091 0074 0060 0049 0000 0033 0027 00220018 00150012 00100009 0.007 0006 24 0.390 03100247 0197 0158 01260102 0.082 0066 0053 004 0035 0028 0023 00190015001300100008 0.007 0.006 0.005 25 0.375 0295 0233 01840146 0116 0092 0074 0059 0047 0038 00300024 0020 0016001300100009 0007 0006 0.005 0004 260361 0281 0220 0172 01350106 0084 0066 0.053 0042 0.033 0026 0.021 001 0014 0011 0009 0007 0006 0.005 0.0040003 27 0.347 0268 0207 0161 0125 0098 0076 0060 0047 0037 0029 0023 0018 001 0011 0009 0002 0.006 0005 0004 0.003 0.002 28 0333 0255 019601500116 0090 0069 0054 0012 0033 0026 00200046 0012 000 0008 0006 0005 0004 0.003 0.002 0002 290321 0243 015 014 0107 002 0063 0048 0037 0029 0022 0010010011 0008 0006 0.005 0004 0003 0002 0002 0002 30 0.308 0231 014 0131 0099 0075 0057 004 0033 0026 0.020 000 0012 0009 0007 0005 0004 0003 0.003 0002 0.002 0001 40 02080142 0097 0067 0046 0.03200220015 001 0008 0.005 0.004 0003 0002 0001 0001 0001 0000 0000 0000 0.000 0.000 | Period % % 6. 8% 9% 10% 11% 2. 33% 4% 5% 6% 7% B% 9% 20% 2 23 24 25% 1 0967 0952 0943 0935 0926 0917 0909 0901 093 086 087 0870 0802 05 0847 0840 0833 0826 0820 086 0806 0800. 1885 1859 1833 1808 1783 1759 1736 1713 1690 1668 1647 1626 1605 1.585 1566 1547 1528 1500 1492 1474 1457 1440. 3 25 23 2673 2674 25 2531 248) 244 2402 2361 2322 2283 2246 2210 24 240 2106 2014 2042 20 1981 152. 4 36.30 3546 365 3.8 332 3.240 3170 3102 3037 2974 2914 285 2798 274) 2690 2639 2589 2540 2494 2448 2404 23bz. 5 445 4329 4212 4100 3993 3890 37 3696 3605 357 3433 3352 3234 3199 3127 3058 2991 2926 2864 2803 245 2689, 6 5742 5076 49 46 4623 4486 4.355 1231 4 3998 389 3784 3685 3589 3498 3410 3326 3745 36 3092 3020 2951. 1 6002 5786 5582 5389 5206 5033 4858 47 4564 4423 4288 460 4039 3922 387 3706 3605 3508 346 3327 3242 3161 - 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