2 Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To pursue this opportunity, the company would need to purchase a piece of equipment for $130,000. The equipment would have a useful life of five years and zero salvage value. It would be depreciated for financial reporting and tax purposes using the straight-line method. After careful study Winthrop estimated the following annual costs and revenues for the new product: 10 points Annual revenues and costs Sales revenues Variable expenses Pixed out-of-pocket operating coats $250,000 $120,000 s 70,000 Hint Print References The company's tax rate is 30% and its after-tax cost of capital is 15%. Click here to view Exhibit 13B-1and Exhibit 138-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate the annual income tax expense that will arise as a result of this investment. 2. Calculate the net present value of this investment opportunity. (Round your final answer to nearest whole dollar) 1 Annual income tax expense 2. Net present value $ 36,937