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 plece of equipment for $130,000. 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: 18 points Boek Annual revenues and coats sales revenues Variable expenses Tixed out-of-pocket operating conta $330,000 $185,000 $3,000 ces The company's tax rate is 30% and its after-tax cost of capital is 16%. 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 present value 44.136 37,644