Net Present Value Carsen Sorensen, controller of Thayn Company, just received the following data associated with production of a new product: Expected annual revenues: $740,000 Projected product life cycle: five years Equipment: $730,000 with a salvage value of $100,000 after five years Expected increase in working capital: $120,000 (recoverable at the end of five years) Annual cash operating expenses: estimated at $444,000 Required rate of return: 8 percent The present value tables provided in Exhibit 19B.1 and Exhibit 19B.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. Year Cash Flow -820,000 X 0 1-4 $ 253,772 X 5 2. Using the estimated annual cash flows, calculate the NPV. 477,657 X