For discount factors use Exhibit $12$B$-1$ and Exhibit $12$B$-2.$

Tatsumi Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $$4,050,000.$ Producing the printer requires an investment in new equipment costing $$4,320,000.$ The printer has a projected life cycle of $5$ years. After $5$ years, the equipment can be sold for $$540,000.$ Working capital is also expected to decrease by $$540,000,$ which Tatsumi will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $$2,430,000.$ The required rate of return is $8\%.$

Required:

Prepare a schedule of the projected annual cash flows.

Year Item

Cash Flow

$2.$ Calculate the NPV using only discount factors from Exhibit $12$B$\mathrm{.}1$

$$

$3.$ Calculate the NPV using discount factors from both Exhibits $12$B$\mathrm{.}1$ and $12B\mathrm{.}2$ $ $x$