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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 16%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed $ 250,000 Working capital needed $ 82,000 Overhaul of the equipment in year two $ 3.000 Salvage value of the equipment in four years $ 11,000 Annual revenues and costs: Sales revenues $ 380,000 Variable expenses $ 185,000 Fixed out-of-pocket operating costs $ 83,000 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 Sing/ganison 17e/Exhibit/Exhibit.143 2.htm EXHIBIT 141-2 Present Value of an Annuity of S1 in Arrears 1111.1(1+r)) [0() Periods % 2960 % 7% XB %6 KEL - 2 %EZ 4% 5% 10% 11% 12% 14% 15% 16% 17% 18% 19% 0.9520.9130.935 0.926 0917 0.909090108930.885 0.877 0.870 0.8620 RSS 0.847 0.840 0.833 0.326 0.8200.813 0.006 0.800 20% 21% 22% 24% 25% 1.886 1859 1833 180 1783 1.759 1736 173 1.690 1668 1667 1626 1.6051.585 1.566 1.547 1.528 1.509 1.492 1474 2.775 2.722 26732.624257725312487 2444 2002 2,361 2322 2283 2246 2210 2174 2.140 2.10G 2.074 2042 2011 1.4571440 1.981 1952 1 + E 4 5 6 7 EZZZ | ZOEZPOVZE 16VZOSZSRSZ GYZ DZELZSAZSUZDI6Z127 LOEZIE OLIEOPTE ZIEL CREE SOVESE GET US LISE SO999 E 16E OGBE E66001 ICT TITLETISSE 1989 EZ97 GHEO 191 ETTEZZEE NZE ZEITE 16 9 9 10 3.433 3.352 22743.1993.127 3058 2.991292628642.803 2.745 2689 5.2025.07649174.767 1.784 368535893.498 3.410132612453167 3.092 3020 2951 6002 5.786 5.5825329 5.20650343684712456444234.288 1.160 403939222812 3706360535081416 67336.4636.210 5971 5.767 5515 5335 5.146496 4.79946794487 4342074078 3.619 35181421 3.329 74157.100 6R026,5156247 5.935 3.750 5517 5.18 5.132 49047721607 4051 4303416340313.9052786 3673 35663.46 7.722736070246.710 6.418 61455565054265.2165.019 19211799362 3.572 6.1956.207595.6754535.2345.029483646564.86432741774.035 0942784127 2.995 ZRSI 1725 11 10.5639899 9.95 1765124273676769026628 11 10 09712910010617600 7.1916.8600261255555124 5032 48704675 44 454114001 12 13 14 15 16 17 10 19 20 TII ISO 261 GEET SOGEZ GOZLOE BOOB 950 NE 200 1197 0672615 TYSON SI6S 1619 269 9 1912 SESZ 0162 MESEC DIE ESO CORTOCCEST SIT016 SIZES ST90629 DICTZOGUERESHPE69066 OBOTSWT TETT TI9 COPOSTUS 2009 ZOE DO ORE ICB 901019911 ZRETOT UZST96STOT TOISSOPSS16SS1099126 LENTIL DIGT ZETOS CES SISTEMOZIO ZGODBO O INTE ONO 610091 REST BE699962 GEWZ006 CHF2601 ISEST TOOSISTESSELBS06190559 011 GTO 20TOISESESSYS 665 9799 SOZCZEGEDIS 186 POLOVITI OG ET REGLIO CONDOTI TOT GOTI IZITTO SL9T16T15 ES1987228901 1952 S2006198 096 BOTOIP90051109 DETTI CONTATO 026E OLEO LITOSTITUT TOUT SC62915 TESTAS11096669 OBICE BIETLOST CITESTISYS92552099 SERBA TICLES TIMEPIT 12.166 11 274 10477091223022707.1206790736007570575.22204.7754570 4.91 121040 141208511150 10336 9.504 12 1950 22 12 24 25 26 14.451 110 12042 11.061102019.427721767645717067036199 431141) 1970 152617012301105299701 115022 108 127 12650 106759239.0778422730 73306873646660975.7665.067 5.1954504721 451413 4.147 1085 1595 120 12001 126 1081099209.161 BAB 78367372 0906 6.491 GIS 570 5.60 5.20649564.720 4520 28 DIBOT SIETI NE EXHIBIT 140-1 Present Value of 51:1(1) 45 58 %6 6060 | Periods 5% 69 7% 10% 11% 12% 13% 14% 16% 17% 18% 19% 20% 21% 2296 23% 24% 25% 1 0.002 0.952093 0935 0.926 0917 0.00909010.093 0.885 0.877 0.870 0.8620155 0.347 0.8.400833 0.125 0.820 0.8130 B06 0.000 2 0.035 0.907000 873 0.8570.542 0.1126 0.812 0.797 0.73 0.769 0.756 0.743 0,731 0.7180.7060.600.683 0.6720,661 0.6500640 3 0.80 0.864 0.500 0.816 0.794 0.772 0.750 0.7310712 0.63 0.675 0658 0.64 0.62 0.609 0.593 0579 0.5640551 0.537 0.524 0.512 4 OSS 0.8230.752 0.763 0.735 0.708 0.63 0.659 0.636 0.613 0.592 OS720.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0410 5 0.822 0.784 0.747 0713 0.68 0.650062109930.567053 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.38603700355 0.341 0.328 6 0790 0.746 0.705 0.666 0.630 0.5960564 0.55 0.507 0.430 0456 0.4320410 0.390 0.370 0352 0.335 0.319 0.303 0.289 0275 0.262 7 0.750 0.711 0665 0.623 053 054705130482 0.452 0425 0.000 0.376 0.3540333 03140.296 0.279 0.263 0.2490.2350 222 0 210 B 0.731 0.677 0.027 OSA20.500 0.502 0.467 0.434 0.400 0.3760351 0.2270.305 0.285 0.266 024190.233 0.218 0.2040.19 0.179 0.161 0.703 0.565059205440500 0.460 0.424 0.910 301 010 0.308 0.284 0.23 0.243 0.225 0.2090 1940 180 0.167 0.155 0.1440 1344 10 067506140558 OSOB 01 0.022 0.1360.35201220295 02200 247 0.227 0.2090.191 0.176 0.162 0.1490 1370 1260.116 0.107 11 065000522 0.475 0.429 0.358 0.250 03170.2870.261 0.237 0.215 0.1950.1780162 0.148 0.15 0.123 0.112 0.1030.094.086 12 0.025 0.557 0.497 0.44 0.1970.56 0.3190.236 0.2570.231 0.200 0.1070.168 0.152 0.17 0.1240.112 0.1020.092 0.03 0.076 0.069 13 0530 0.400 0.415 0.3600326 0.2000 2500 2290.2010.112 0.1630145 0.10 0.116 0.104 0.0910084 0.075 0.00 0.061 0.055 14 0577 05 0.412 01030002990002020501810.160 0.141 0.125 0.11 0.00 0.008 0.078 0.00 0.00 0.055 0.04 15 0.355 10.417 0.044 027502390209 0.13 0.1600140 0.123 0.1080.095 004 0.024 0.065 0.0570051 0.015 0.040 0.035 16 054 40194 033 0.292 0.2520218 0.18 0.1630141 0.03 0.081 0.071 0.002 0.05 0.0170002 0.0.36 0.002 0.028 17 0510036017100317 0.2700231 0.10 0.17 0.16 0.125 0.1080093 0.00 0.0090060 0.052 0.025 0.0290034 0.00 0.026 0.023 18 040.4160150025 0.250 0.212B001530 0.111 0.003 0050005100400 0.032 0.0200.024 0.021 0.018 19 0467301011 0277 02 010160 L 0116 0.0 0.0 070 0000 0.00000037 0.031 20 0496 0172 0.12 0.027 0.0220.02000170.014 0.100 0.007 0.073 0.06 0.051 001007 0.031 0.026 0022 21 0410 0032 0.19 0.16050112 0.019 0.01600110012 001 0.0770.061 0053000037001 22 0.0200022 0.01 0.015 001100110.000 1202710261500 15001230101 0.000 0.0 0 0.0 0.0 0.01 0.02 0.022 0.01 0.0151 0.03 0.01 2 0.400 20211 0.170 01.30 0.112 0.091 0.000 0.0740000000000100011 10.027 0.032 O 011000107010 0102 0018 0.015 0.012 0.0100.000 24 0.007 0.000 0.00 0.053 0.021 0.003 0.019 0:17 000 0.007 0.000 0.005 1050 DECODOGO LOCULO I 2010 IZIO TOSO CILO ALO MOTOSIOCO VO 2000 CHO CEDO 100 0100100 SIOD 0000000000100900 DOT COMO LO OD DOOD ZOO

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