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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

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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 $150,000 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: The company's tax rate is 30% and its after-tax cost of capital is 14%. Required: Calculate the net present value of this investment opportunity

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