Question

Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The companys discount rate

Periods 4% 5% 6% 7% 8% 9% 10% 1% 2% 4% 15% 6% 7% 8% 9% 20% 218 22% 23% 24% 25% |1 0.962 0952 0943 0.935 0926 0.97 0909 0901 0Periods 4% 5% 6% % % 10% 棉 2 % % % 5% 6% 8% 9% 20% 2% 22% 23% 24% 25% 1 0962 0952 0943 0935 0926 0917 0909 0901 0893 0885 087

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Answer #1

Net present value = Present value of cash inflow-Present value of cash outflow

= (120000*2.69+84000*.516+12000*.516)-(230000+84000+9000*.718)

Net present value = 51874

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