PROBLEM 13-18 Net Present Value Analysis [LO13-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four. period. The company's discount rate is 15%. After careful study, Oakmont estimated the followi costs and revenues for the new product: $130,000 $60,000 $8,000 $12,000 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 revenues Variable expenses .. Fixed out-of-pocket operating costs.. $250,000 $120,000 $70,000 When the project concludes in four years the working capital will be released for investment else- where within the company. Required: Calculate the net present value of this investment opportunity