Please find "Revenues"

For discount factors use Exhibit 12B-1 and Exhibit 12B-2. Talmage Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $2,700,000. Producing the printer requires an investment in new equipment costing $2,880,000. The printer has a projected life cycle of 5 years. After 5 years, the equipment can be sold for $360,000. Working capital is also expected to decrease by $360,000, which Talmage will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $1,620,000. The required rate of return is 8%. Required: 1. Prepare a schedule of the projected annual cash flows. Year Item Cash Flow 0 Equipment 2,880,000 Working capital 360,000 Total $ 3,240,000 1-4 Revenues 2,700,000 Operating expenses 1,620,000 Total 1,080,000 Revenues -540,000 X Operating expenses 1,620,000 Salvage 360,000 Recovery of working capital 360,000 Total 1,800,000