Xtrata is evaluating an opportunity to manufacture and sell a new product for a four- year period. The companys discount rate is 15%. After careful study, Xtrata estimated the following costs and revenues for the new product:

Cost of equipment needed	R130,000
Working capital needed	R60,000
Overhaul of the equipment in two years	R8,000
Salvage value of the equipment in four years	R12,000
Annual revenues and costs:
Sales revenues	R250,000
Variable expenses	R120,000
Fixed out-of-pocket operating costs	R70,000

When the project concludes in four year the working capital will be released for investment elsewhere within the company.

Required:

Calculate the net present value of this investment opportunity.