Exercise 14C-1 (Algo) Income Taxes and Net Present Value Analysis (L014-8] Gaston Company is considering a capital budgeting project that would require a $2,700,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows 63,100,000 1.510.000 1,590,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket coute Depreciation Total fixed expenses Net operating income $650,000 540,000 1,100,000 $ 400,000 Click here to view Exhibit 148:1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables, Required: Compute the project's net present value. Net present value Problem 14C-3 (Algo) Income Taxes and Net Present Value Analysis (LO14-8] Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: $380,000 $ 75,000 $ 25,500 Coat of equipment needed Working capital needed Repair the equipment in two years Annual revenues and contut sales revenues Variable expenses Fixed out-of-pocket operating costs $500,000 $255,000 $110,000 The place of equipment mentioned above has a useful life of five years and zero salvage value. Lander uses straight-line depreciation for financial reporting and tax purposes. The company's tax rate is 30% and its after-tax cost of capital is 11%. When the project concludes in five years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables Required: 1. Calculate the annual income tax expense for each of years 1 through 5 that will arise as a result of this investment opportunity 2. Calculate the net present value of this Investment opportunity. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar.) 1. Income tax expense