Winthrop Company has an opportunity to manufacture and sell a new product for a five$-$year period. The company would need to purchase a piece of equipment for $$120,000$ that has 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. Winthrop estimated the following annual costs and revenues for the new product:

Annual revenues and costs:

Sales revenues $ $310,000$

Variable expenses $ $175,000$

Fixed out$-$of$-$pocket operating costs $ $81,000$

The company$$s tax rate is $30\%$ and its after$-$tax cost of capital is $15\%.$Calculate the annual income tax expense arising from this investment.

Calculate the net present value of this investment opportunity.