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Problem 14-18 (Algo) Net Present Value Analysis [LO14-2) 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 equipnent needed Working capital needed Overhaul of the equipnent in two years Salvage value of the equipnent in four years $ 275, 000 $ 86,000 S 10,000 S 13,000 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 420, 000 $ 205,000 $ 87,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit. 148-1 and Exhibit.148:2. 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.) Net present value

Problem 14-18 (Algo) Net Present Value Analysis [LO14-2) 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 equipnent needed Working capital needed Overhaul of the equipnent in two years Salvage value of the equipnent in four years $ 275, 000 $ 86,000 S 10,000 S 13,000 Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $ 420, 000 $ 205,000 $ 87,000 When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit. 148-1 and Exhibit.148:2. 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.) Net present value

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Problem 14-18 (Algo) Net Present Value Analysis (LO14-2) 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 equipnent needed Working capital needed Overhaul of the equipnent in two years Salvage value of the equipnent in four years $ 275, 000 $ 86,000 S 10,000 S 13,000 Annual revenues and costs: $ 420, 000 $ 205,000 $ 87,000 Sales revenues Variable expenses Fixed out-of-pocket operating costs When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 148-1 and Exhibit.148-2. 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.) Net present value
Transcribed Image Text:Problem 14-18 (Algo) Net Present Value Analysis (LO14-2) 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 equipnent needed Working capital needed Overhaul of the equipnent in two years Salvage value of the equipnent in four years $ 275, 000 $ 86,000 S 10,000 S 13,000 Annual revenues and costs: $ 420, 000 $ 205,000 $ 87,000 Sales revenues Variable expenses Fixed out-of-pocket operating costs When the project concludes in four years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 148-1 and Exhibit.148-2. 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.) Net present value
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