Holland Inc. has just completed development of a new cell phone. The new product is expected to produce annual revenues of $13,500,000. Producing the cell phone requires an investment in new equipment, costing $14,400,000. The cell phone has a projected life cycle of five years. After five years, the equipment can be sold for $1,800,000. Working capital is also expected to increase by $1,500,000, which Holland will recover by the end of the new products life cycle. Annual cash operating expenses are estimated at $8,100,000. The required rate of return is 8 percent. Required: Prepare a schedule of the annual net cash flows. Calculate the NPV.