Shimano Company has an opportunity to manufacture and sell one of two new products for a five-year period. The companys tax rate is 30% and its after-tax cost of capital is 14%. The cost and revenue estimates for each product are as follows:

	Product A			Product B
Initial investment in equipment	$	430,000		$	580,000
Initial investment in working capital	$	88,000		$	63,000
Annual sales	$	400,000		$	420,000
Annual cash operating expenses	$	215,000		$	185,000
Cost of repairs needed in three years	$	48,000		$	73,000

The equipment pertaining to both products has a useful life of five years and no salvage value. The company uses the straight-line depreciation method for financial reporting and tax purposes. At the end of five years, each products working capital will be released for investment elsewhere within the company.

Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. What is the net present value of each investment opportunity? (Round discount factor(s) to 3 decimal places. Round your intermediate calculations and final answers to nearest whole dollar.)