Ch.12 Review Assignments 5 10 points eBook Print References Oakmont Company has an opportunity to manufacture and sell a

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Ch 12 Review Assignments 5 10 Points Ebook Print References Oakmont Company Has An Opportunity To Manufacture And Sell A 1 (31.31 KiB) Viewed 9 times

Ch.12 Review Assignments 5 10 points eBook Print References Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 17%. 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 two years Salvage value of the equipment in four years Annual revenues and costs: Sales revenues $ 165,000 $ 67,000 $ 10,000 $ 13,000 Saved $ 320,000 $ 155,000 $ 77,000 Net present value Variable expenses Fixed out-of-pocket operating costs When the project concludes in four years the working capital will be released for investment elsewhere within the company Click here to view Exhibit 128-1 and Exhibit 128-2, 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.)