Net Present Value Carsen Sorensen, controller of Thayn Company, just recelved the following data assoclated with production of a riew product: - Expected annual revenues: $730,000 - Projected product life cycle: five years - Equipment: $790,000 with a salvage value of $100,000 after five years - Expected increase in working capital: $80,000 (recoverable at the end of five years) - Annual cash operating expenses: estimated at $438,000 - Required rate of return: 8 percent The present value tables provided in Exhibit 198.1 and Exhibit 198.2 must be used to solve the following problems. Required: 1. Estimate the annual cash flows for the new product. Enter cash outflows as negative amounts and cash inflows as positive amounts. 2. Using the estimated annual cash flows, calculate the NPV. 3. What if revenues were overestimated by $146,000 ? Redo the NPV analysis, correcting for this error. Assume the operating expenses remain the same. Enter cash outflows as negative amounts and cash inflows as positive amounts. - Annual cash operating expenses: estimated at $438,000 - Required rate of return: 8 percent. The present value tables provided in Exhibit-19B.1 and Exhibit 198.2 must be used to solve the following problems: Requiredt 1. Estimate the annual cash flows for the new product. Enter cash outflows as negative amounts and cash inflows as positive amounts. 2. Using the estimated annual cash flows, calculate the NPV. 3. What if revenues were overestimated by $146,000? Redo the NPV analysis, correcting for this error. Assume the operating expenses remain the same. Enter cash outflows as negative amounts and cash inflows as positive amounts