Net Present Value Carsen Sorensen, controller of Thayn Company, fust received the following data associated with production of a new product: - Expected annual revenues: $760,000 - Projected product life cycle: five years - Equipment: $750,000 with a salvage value of $100,000 after flve years - Expected increase in working capital: $110,000 (recoverable at the end of five years) - Annual cash operating expenses: estimated at $456,000 - Required rate of return: 8 percent The present vaiue tables provided in Exhibit 198.1 and Exhbit 1982 must be wsed to solve the following problems. Required: 1. Estimate the annual cash fiows for the new product. Enter cash outflows as negative amounts and cash inflows as positive amounts. 2. Using the estimated annual cauh fows, caiculate the NPV. 1 3. What if revenues were overestimated by $152,000 ? Redo the NPV analyss, correcting for this error, Assume the operating expenses remain the same. Enter cash outflows as negative amounts and cash inflows as positive amounts