Net Present Value Carsen Sorensen, controller of Thayn Company. Just received the following dats associated with production of a new product: Expected annual revenues: $750,000 Projected product life cycle: five years Equipment: $740,000 with a salvage value of $100,000 after five years Expected increase in working capital: $130,000 (recoverable at the end of five years) Annual cash operating expenses: estimated at $450,000 Required rate of return: 8 percent The present value tables provided in Exhibit 198.1 and Exhibit 196.2 must be used to solve the following problems, Required: 1. Estimate the annual cash rows for the new product. Enter cash outflows as negative amounts and cash inflows as positive amounts Year Cash Flow 0 5 2. Using the estimated annuat cash flows, calculate the NPV. 3. What if revenues were overestimated by $150,0007 Redo the NPV analysis, correcting for this error. Assume the operating expenses remain the same Enter cash outfiows as negative amounts and cash inflows as positive amounts. Cash Flow Year Present Value 0 1-4 5 Net present value