Carsen Sorensen, controller of Thayn Company, Just recelved the folsowing data associated with production of a new product: - Expected annual revenues: $750,000 - Projected product life cycle: five years - Equipment: $800,000 with a salvage value of $100,000 atter five years - Expected increase in working capitat: $100,000 (recoverable at the end of five years) - Annual cash operating expenses: estimated at $450,000 - Required rate of return: 8 percent. The present value tables provided in Exhibit 198.1 and Exhibit 198,2 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 amounts: 2. Using the estimated annual cash flaws, calculate the NPV. 3. What if revenues were overestimated by $150,000 ? Redo the NPV analysis, correcting for this error. Assume the operating expenses remain the same. Enter cash outhlows as negative amounts and cash inflows as positive amounts