Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. check my oakmont company has an opportunity to man

Check my Oakmont Company has an opportunity to manufacture and sell a new product for...

50.1K

Verified Solution

Question

Accounting

image
Check my 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 year two Salvage value of the equipment in four years s 165,000 $ 67,000 $ 10,000 13,000 Sales revenues Variable expenses Fixed out-of-pocket operating costs 320,000 s 155,000 $ 77,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 138-1 and Exhibit 138-2. to determine the appropri ate discount factors) using tables. Required Calculate the net present value of this investment oppontunity

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Explain why maximal wrist extension is not passive insufficiency of the muscles generating grip force. Since...

Medical Sciences
Q

Based on the article \"steel Axes for Stone Age Australians\" by Lauriston Sharp, what were some...

Psychology
Q

Consulting firm Deloitte works with many organizations to improve their business practices. Recently, the firm looked...

General Management
Q

Consider the graph of the function f x x 9 x3 2x 15x What are...

Calculus
Q

Factor the polynomial completely Q x x 256 Q x Find all its zeros State...

Calculus
Q

Simplity min 3 10 13 a 7 18 O b O c O d 6...

Algebra
Q

\begin{tabular}{r|r} Product Cost Product & Proportion to Total Costs Direct Materials to To.. Direct Labor...

Accounting
Q

TRANSACTIONS January 2 Pedro Hernandez invested $20,000 to start an advertising agency January 2 Rented...

Accounting
Q

Answer the following question briefly PART A and PART B and Prepare a cost sheet...

Accounting
Q

PLEASE HELP ME ON THIS QUESTION!! Hrubec Products has just acquired a small company...

Accounting
Q

Bir tesis varlnn kapasitesini veya faydal mrn uzatmayan, yalnzca varl koruyan veya alr duruma getiren...

Accounting
Q

please answer fully Yield to maturity. What is the yield...

Finance