Question: This answer was wrong. Please assist for Oakmont Company with obtaining right answer Oakmont Company has an opportunity to manufacture and sell a new product

This answer was wrong. Please assist for Oakmont Company with obtaining rightThis answer was wrong. Please assist for Oakmont Company with obtaining right answer

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 $190,000 Working capital needed $69,000 Overhaul of the equipment in two years $6,000 Salvage value of the equipment in four years $16, 500 Annual revenues and costs: Sales revenues $340,000 Variable expenses $165,000 Fixed out-of-pocket operating costs $79,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity. (Round discount factor(s) to 3 decimal places.)

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