Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To pursue this opportunity, the company would need to purchase a piece of equipment for $160,000. The equipment would have a useful life of five years and zero salvage value. It would be depreciated for financial reporting and tax purposes using the straight-line method. After careful study. Winthrop estimated the following annual costs and revenues for the new product: Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $310,000 $150,000 $ 76,000 The company's tax rate is 30% and its after-tax cost of capital is 16% Required: 1. Calculate the annual income tax expense that will arise as a result of this investment 2. Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar) 1. Annual income tax expense 2 Net present value