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Oakmont Company has an opportunity to manufacture and sell a new product for a four-year...

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Accounting

Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate is 16%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed $ 150,000 Working capital needed $ 64,000 Overhaul of the equipment in year two $ 10,000 Salvage value of the equipment in four years $ 14,000 Annual revenues and costs: Sales revenues $ 290,000 Variable expenses $ 140,000 Fixed out-of-pocket operating costs $ 74,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company.

Required:

Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.)

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