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PROBLEM 13-10 Net Present Velu. Aneysis L013-2 Oakmont Company has an opportunity to manufacture and sell a new preduct for a four-year period. The companys

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PROBLEM 13-10 Net Present Velu. Aneysis L013-2 Oakmont Company has an opportunity to manufacture and sell a new preduct for a four-year period. The companys discount rate is 15%. Aher eareful study, Oskaseet esim-ted the fuIrwing easts and revenues for the ne. Preduei Cost of equipment needed Working capital needed Overhaul of the equipment in two years Salvage value of the equipment in four years Annual revenues and costs: Sales revenoes Variable expenses Faxed out-of pocket operating costs 130,000 560,000 8,000 12,000 $ 250,000 s 120,000 $ 70,000 When the prect condades four years tho working capital will be released for investment elambe" withinthe company Required Caleulate the net present value of this invectment opportunlity

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