- Expected annual revenues: $700,000 - Projected product life cycle: five years - Equipment: $720,000 with a salvage value of $100,000 after five years - Expected increase in working capital: 580,000 (recoverable at the end of five vears) - Annual cash operating expenses: estimated at 5420,000 - Required rate of return: 8 percent The present value tables provided in Exhisit 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 flows, calculate the NoY. 3. What if revenues were overestimated by $140,000. Redo the NPV analysis, correcting for this error. Assume the operating expenses remrain the same. Enter cas outflows as negative amounts and cash inflows as positive amounts