Font Styles Holland Inc. has just completed development of a new cell phone. The new product is expected to produce annual revenues of $1,350,000. Producing the cell phone requires an investment in new equipment, costing $1,440,000. The cell phone has a projected life cycle of 5 years. After 5 years, the equipment can be sold for $180,000. Working capital is also expected to increase by $180,000, which Holland will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $810,000. The required rate of return is 8%. 1. Prepare a schedule of the projected annual cash flows. 2. Calculate the NPV using only discount factors listed below: Discount Factor Year 0 1.00000 Year 1 0.92593 Year 2 0.85734 Year 3 0.79383 Year 4 0.73503 Year 5 0.68058 3. Calculate the NPV using discount factors listed below: Discount Factor Year 0 1.00000 Year 1-4 3.31213 Year 5 0.68058