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 $390,000 $215,000 $ 89,000 The company's tax rate is 30% and its after-tax cost of capital is 17%. 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 Not presente