Lander Company has an opportunity to pursue a capital budgeting project with a five$-$year time horizon. Lander estimated the following costs and revenues for the project:

Cost of equipment needed $ $400,000$

Working capital needed $ $77,000$

Repair of the equipment in two years $ $26,500$

Annual revenues and costs:

Sales revenues $ $520,000$

Variable expenses $ $265,000$

Fixed out$-$of$-$pocket operating costs $ $114,000$

The piece 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 $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Calculate the annual income tax expense for each of years $1$ through $5$ arising from this investment opportunity.

Calculate the net present value of this investment opportunity