Homework - 2 Suvod Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The

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Homework 2 Suvod Oakmont Company Has An Opportunity To Manufacture And Sell A New Product For A Four Year Period The 1 (27.76 KiB) Viewed 33 times

Homework - 2 Suvod Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 16%. After careful study. Oakmont estimated the following costs and revenues for the new product Cost of equipment needed $ 250,000 Working Capital needed $ 82,000 Overhaul of the equipment in two years $ 8,000 Salvage value of the equipment in four years 5 11.00 Annual revenues and costs Sales revenues Variable expenses $ 380,000 Fixed out-of-pocket operating costs $ 185,600 $ 83,600 When the project concludes in four years the working capital will be released for investment elsewhere within the company Click here to view Eb20-1 and Exhibit 120.2. to determine the appropriate discount factors using tables Required: Calculate the net present value of this investment opportunity (Round your final answer to the nearest whole dollar amount)