Carsen Sorensen, controller of Thayn Company, just received the following data associated with production of a new product: .Expected annual revenues: $770,000 . Projected product life cycle: five years Equipment: $810,000 with a salvage value of $100,000 after five years Expected increase in working capital: $130,000 (recoverable at the end of five years) Annual cash operating expenses: estimated at $462,000 Required rate of return: 8 percent The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Estimate the annual cash flows for the new product. Enter cash outflows as negative amounts and cash inflows as positive Year Cash Flow -940,000 308,000 538,000V 1-4 2. Using the estimated annual cash flows, calculate the NPV. 805,054X 3. What if revenues were overestimated by $154,000? Redo the NPV analysis, correcting for this error. Assume the operating Year 0 1-4 Cash Flow Present Value Net present value