ABC Company has assembled the estimates shown below relating to a proposed new product. These estimates are based on a 5-year project life, at the end of which the new equipment would be sold, working capital would revert to other uses in the company, and the product would be discontinued. Cascade uses a discount rate of 18%. Please ignore consideration of income taxes in this problem. Annual cash sales $420,000 Annual out-of-pocket cash expenses $330,000 Annual depreciation on new equipment $36,000 Initial cost of new equipment $200,000 Salvage value of equipment in 5 years $20,000 Working capital requirement $140,000 Required: Compute the net present value of the new product