The initial cash outlay and cash now projections are presented below for new project that Outdoor Sports. Inc. is evaluating. Outdoor Sports is considering manufacturing a new line of laser rangefinders: Initial Cash Outlay Annual Net cash inflows Years 1 -5 Salvage value of equipment $1,500,000 $450,000 $0 The initial cash outlay represents the purchase of an equipment fo r $1 .5 million with a life of 5 years Outdoor Sports uses a cost df capita l of 12 percent for discounting purposes. It depreciates its equipment on a straight-l ine basis over a period o f five years. Ignore the effect of income taxes. Present va lue factors c 12 percent are as follows: Year 1 .893 Year 2