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 $$155,000$ 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:

The company's tax rate is $30\%$ and its after$-$tax cost of capital is $15\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Calculate the annual income tax expense arising from this investment.

Calculate the net present value of this investment opportunity.

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