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 $135,000. 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 $ 260,000 Variable expenses $ 125,000 Fixed out-of-pocket operating costs $ 71,000 The company tax rate is 30% and its after tax costs of capital is 16% Annual Income tax expense? Net Present Value?