Rosman Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Rosman estimated the following costs and revenues for the project: Cost of new equipment needed $ 420,000 Sale of old equipment no longer needed $ 80,000 Working capital needed $ 65,000 Equipment maintenance in each of Years 3 and 4 $ 20,000 Annual revenues and costs: Sales revenues $ 410,000 Variable expenses $ 175,000 Fixed out-of-pocket operating costs $ 100,000 The new piece of equipment mentioned above has a useful life of five years and zero salvage value. The old piece of equipment mentioned above would be sold at the beginning of the project and there would be no gain or loss realized on its sale. Rosman uses the straight-line depreciation method for financial reporting and tax purposes. The companys tax rate is 30% and its aftertax cost of capital is 12%. When the project concludes in five years the working capital will be released for investment elsewhere within the company. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.