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 Sale of old equipment no longer needed Working capital needed Equipment maintenance in each of Years 3 and 4 Annual revenues and costat Sales revenues Variable expenses Fixed out-of-pocket operating costs $480,000 $ 92,000 $ 77,000 $ 32,000 $530,000 $235,000 $124,000 The new plece of equipment mentioned above has a useful life of five years and zero salvage volue. 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 company's tax rate is 30% and its after-tax 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 148.1 and Exhibit.148:2. to determine the appropriate discount factors) using tables. DIT B-1 Pelant Value of St. 16 M 0 O OLEO CAO SSO ONS 1 CEO Pero 5 100 15 09 191 20 21 2 24 09620992 0.96 09150925 09170909 0.901 0.090 085 0170370 08020055 0347 0.00 0.00 0.20 0.20 00 0.00 0.000 2 0935 0.9070890 0.875 0.557 0.542 0320 00797 07830709 0756 070 071 0.7180.706 064 0603 06720661 0650 0640 0.0164011400794077207510731 07120693 0856500641 0624 0009 0.5930579056 0551 0537 0.524 0.512 08550033 0.792 0700073507080683 0.6 0.636 0012 0.592 0.572 0.552 0534 0.516 049 0482 04670458 047 042 0410 5 0022 0.714 077 0700661 065000205930567 050 0510 0.497 046 0456 0437 04100402 036 03700355 0.341 0221 07900746 0.705 0000 0000 0595 0.554 055 0507 0030 0456 002 0.410.000 0.170 0352 0.335 0.19 0.303 0209 02750262 7 0.750 0.7 0.005 0.021 058 057 05004020452 0425 0.400 0.376 0.354 0.33 0.3 0.296 0229 0263 029 0235 022 0210 0731 06770.027 0532 050 0502 0.467 004 0404 0.370 0351 0.327 0.305 0205 0.206 0249 028 028 0204 0.191 009 0.703064505920540.500 0.460 0424 0.391 0361 0.330 0:30 0264 0.263 0243 0225 02090194 01500107 0155 0144 014 10 0.67606140558 0508 0462 0422 036 0352 0322 0295 0270 0247 0227 0208 0191 0176 020149 00 0126 0196 0.107 TI 0650 055 0.527 0.475 0429 03380350 031 0287 0201 021 020 0195 0170 0:40 00501012 03030004 0000 0.625 0.557 0.497 0.44 0.39 0.356 0319 0206 0257 02310208 037 016 01520937004000802009200) 0.076 0000 05010500 0.400 0.45 0.368 0.726 0.290 02580229 0.2040120 010 Ono 0104 0033 00040075 0.06300010055 0:57705050420351 0.340 0.299 0.263 022 0.205 0101000041 012501 0090008 0.00 0.0000002 00550049 0.046 15 0.5550411 0.412 0.362 0.31502750219 0200 00.300 05000 008 0095 0064 0.074 0065 005 0.051 0.04500400035 0534 0.45 0.31 03090292 0252 0210 0158 00141 022 0107 000 0001 007 0062 0:054 000 0002 0.006 0032 0.020 17 0.50 0456 0.37 0.002200221 0198 01700346 0125 000 0.000 0.00 0.00 0.00 0.052 0005 0.009 0034 0030 002 0022 0.24 0.41 0.750 0.290 0.250 0.21201000153 000 0 0095 000 0000 0059 00510064 0.03 0.03200200024002100m 19 0.475 0.396 0731 0277 0232 0194 034 008 0.16 0.090 0000 0000 0000 0051 004 0037 0.001 0.027 0022 00200097 20 0456 0770312 0.250 0.215 0170 0149 0124 0904 0087 0073 0001 0051 000 000 0031 0.026 0022 0.019 0010010012 21 009 0.359 024 02420190 0164 005 0.12 0090 0.077 0064 0.053 004 0.03 0.001 0026 0.022 0.016 005 000 000 000 22 0.422 0342 0273 0220 0194 0150 0121 0101 0000 0000 0056 0045 0.038 0002 0026 0022 0.01 0.010000011 0.0000007 20 04060.326 0262 0211 01700038 0112 00910074 0.060 0049 001000300027 002200180018 0.002 0.0100003 00020005 20 0.90 0.30 0.247 0997015801200102 0002 0066 0053 000 0005 0.025 002 0019 0015000 0010 0000 000 000 000 25 375 0.295 0200015401460116 0.092 0.034 0059 000 0000 0000 0024 0.0200.16 000 000 000 0007000600050004 20 0.361020102200172 013501000004 0066 0.053 0002 00 0026 002 001001100 0000 0.007 0000 0005 0.0040003 27 0347 026 0207 0:01 0050098 0.076 00800067 00:37 0029 002 000054 001 0000000000000000040000002 20 0.333 02550190 0:11 0090 00690054 0042 000026 0020 000 0002 0010 0.00 0.005 0.005 0004 0.00300020002 29 0.321 0.243 0350541 05070002 0.063 0000 000029 0.022 001 0010011 000 0000 0005 0000 0000 0002 0.002 0.002 30 0.308 0231 0110001 0.09 0076 0057 0044 003 0026 002000150012 0000 0000 0005 0004 0.000 0.000 0.00200020001 0 0.203 052 0097 0067 000 0002 0.022 0015 0.0110.000 0.005 0004 0000 0002 0001000100010000 0000 0000 0000 0000 ERRERAS MODO 0150 Periods 4 - 570 11 14 15 4 5% 7 B 131 14 15 19% 20 21 22 23 245 25 0.962 0.952 0.943 09350926 0917 099 0907092 05 0 0 0 0 0 0 0 0 0 0 0 000 1880 1859 1833 1.800 7759 U36 170 1690 1668 1647 1626 1005 1505 1506 156 1521 1509 1492 144 1457 1440 2775 2723 2673 2624 2577 2521 2487 2444 2,602 2361 23222280 2246 2210 2174 210 2106 2074 2042 2.0111901 1952 3800 3.546 3405 3387 TE 32403170 3102 10372974 2014 2.855 2.790 27432690 2699 2509 2540 2494 243 244 2362 4452 4320 4212 4100 39933.8903791 369 3605 3517 3433 3352 3.274 1199 11272050 2991 2926 2064 2003 2745 2609 5242 5.076 4917 4757 4633 4400 4355 4231 411 3.9983.09 2.734 1515 359 3498 3410 1326 394531673092 3020 2951 5002 5786 5582 5.329 5.20 5.003 4068 4712 4564 442342804300 4099 2922 3812 3706 1005 3.500 3.416 327 3.242 1961 8.463 6210 5971 5535 535 5404968 4799463944874.3444207 4070554 38373.726 1619 3518 3.4211329 7435 2100 6.302 6.515 0.247 5.995 5750 5.537 5328 5132 494647724.607 4451 4.303416040311905 370626733.566 3463 2722 7360 2024 6710 6418 6145 58895650 5.420 5216 5019407659419442794924054 3.923 37993612571 0.760 3300 2887 7499 7039 6.3056.495 6.207 508 5687 5450 5234 5029 430646564436 437 477 40353902 37763656 9305 100 1334 7905 7530 7161 6.01 6.492 6194 598 5600 5.421 5197 4900 4790 611 409 427 4127 19053051 3725 |||| 0358 7904 2487 7100 67506424 6122 5.342 550 5342 511 4950 475 4533436242014053 392 3700 10563 9090 9.295 1145 8.244 7786 73676.902 6620 6.302 6.002 572454852295000 43024611 402 4265 4100 39021124 11110 10:3809712 9.900 0.559 1061 7000 2191 601 6462 6125.547 5.575 5.324 5.092 87646754409 415 41534001255 , 2010 9.47 1551 8.30 702473796.974 6,604 6.265 5.954 5.60 5.405 5.1624931 470 456 457 450040303 12306 91278 10.477 90 9122 354 30227549 7120 072063760075740 5.475 5.222 4990 4775 4575 4.391421940591910 12.650 1000 100 10050 72 756 0.2017702 72506540 64676121 05534 5 27350 400 400 419 420) 40003928 10.336 9004950 305 709 2.300916.550 07056775564 5.10 5.07040465444242034097 3942 13500 1246211470 504 91 9129 179037497025 6623 6250 5929 5620 525 5.301404657042794103954 N029 12 21 1766 089610119292 1649 1.0757502 210260731259735.665 545 409 4675 476 4292421 2000 14451 3160 2011 102010442 20170 76457170 67063506011 5696 5:410 5990946904484.30241303970 14.352 49 1230311272 371 9.500 0.8333.266 271 7230629267996054 57235425167 492542034499 431 43 3.976 152471799 12.550 11469905299.07 1905 8348 2734 723 605 6.04 60735745 5.45159824937470 4507404 1 15622 4094 127811654906750823 9077 0.42278437370 673 6.464 80075766 5467 599544721454 4.323 17 2005 15.903143753003 1026 1010 9929 990 11.488 709 7372 6.906 6491 6110570 5.400 5.206 4956 4721 4520 43214951 1900 16330 021 119871090510027 9212 548 794378096935 65146936 57905492 5.215296447344524 43324154 1990 16.603 4008 400 12001 11.2%) 9.307 3002 79547401 6.9616534 6152530550252234970 47394528 43354157 3992 16.904 15541 351 12.278 1150 10:190 9370 650 2072 2070 6.983 6551 6166 5320 5510 5.2294.97540 41 43374150 12292 15372 3765 12.409 1125010274 94275694 055 7496700385666077 58295517 52394979174645344309 410 1995 19293 7150 15046 133321025107579779895124 7634705664265233587155485258 4997476045444156 1999 10 19 22 24 20 20 29 30 40 Required: 1. Calculate the annual income tax expense for each of years 1 through 5 that will arise as a result of this investment opportunity 2. Calculate the net present value of this investment opportunity. (Round your final answer to nearest whole dollar.) 1. Income tax expense Year 1 Year 2 Year 3 Year 4 Year 5 2. Net present value