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Business, 21.11.2019 23:31 tttyson

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 14%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 140,000 working capital needed $ 62,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 13,000 annual revenues and costs: sales revenues $ 270,000 variable expenses $ 130,000 fixed out-of-pocket operating costs $ 72,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 7b-1 and exhibit 7b-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.)

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