Question 4 - Harper Company has been offered a five-year contract to provide component parts for a large manufacturer. Calculate the net present value and determine whether the contract should be accepted based on the following data relate to the contract. Costs and revenues due to the contract would be: Cost of special equipment Working capital required Relining of the equipment in three years. Salvage value of the equipment in five years... Annual revenues and costs: Sales revenue from parts. Cost of parts sold . Out-of-pocket operating costs (for salaries, shipping, and so forth) $160,000 $100,000 $30,000 $5,000 $750,000 $400,000 $270,000 At the end of five years the working capital would be released for use elsewhere in the company. Harper Company uses a discount rate of 10%.