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 $165,000. 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	$ 400,000
Variable expenses	$ 220,000
Fixed out-of-pocket operating costs	$ 90,000

The companys tax rate is 30% and its after-tax cost of capital is 18%.

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.

Note: Round your final answer to the nearest whole dollar.