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 $145,000. 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 $280,000 $135,000 $ 73,000 The company's tax rate is 30% and its after-tax cost of capital is 16% Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. 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 expenso 2. Not prosent value ECHIBT 148-1 recent Value of St. 15% Periods 1 2 NEE 4 5 9 7 3 5 10 11 12 9000 MOD COCO 15 5 65 ON 10 Us 09620952090 0935 0923 0.017 0909 0.01 0.893 0.005 0.877 0.870 0.862 0.855 0542 0.0400833056 0820003060300 10 1974 20 21 20 25 0.925 0.907 09900873 0.857 0.8420.820 0312 0.797 0783 0.709 0.7560743 0731 0989035408400316 0794077207510731 0712 07 07060694 063 0672 060106500600 0.693 0.6750658 0.54 0624 0.000 0.590 0.579 0.564 0.551 0.537 0.5240512 0.855 0.623 07920703073907000683 0.650 0.636 060305920572 0552 0534 0516 0.400 0.482 04670451 0.07 0.4230410 0822 0.734 0707073 0681 0.6500621 052 0567 0.50 0.519 0497 0.470 0.456 0.43 0.41 0.002 0.30 0.370 0.355 0.3410320 07900745 0.705 0.666 0630 0.596 0.564 0515 0.507 0450 0456 0432 0.0100390 0.370 0352 0.335 0.100.300 0209 02750202 0.750 0.71 0.6650623 0.583 0.547 0.50 0482 0.452 0.425 0.400 0.375 0.3540333 0314 0295 02700263 024 025 0222 0210 0730677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.375 0.751 0.327 0305 0285 0.206 0249 0233 0.21 0.20401 09 0168 0.7030645 0.592 0.544 0500 0.400 0.424 0.391 0.361 0.333 03080284 0263 023 0225020001940130070155 014 004 06780014 05580500 0.4630422 0386 0.352 0.3220295 0.270 0247 0.227 02000191 0170 0362 090.1370125 0115 0507 005005850527 0.4750429 0.798 015003317 0.287 0201 02 0215 0.195 0178 0162 03 005 0123012 0.6250557 0.497 0.4640397 0356 0.19 0.205 0.257 0221 02080107 016 0:12 0.1370124 0112 0102 0092 000 0.00000 0.00105304090415 0.368 0.326 0.290 0.250 0.229 0.2040112012015 01300116 0104 0093 06 07 0064 0.001 0055 05770505 0442038 0340 0.299 0.200 0.20 0.205 0101 0100011 0.125 0.11 0 099 0000 0.07 0000 0002 0055 0.000000 0555 0411 0.417 0.362 0.31502750239 0209 013 0360 05400123 03080095 0014 00240065 0057 0.05 0.065 0000 0035 0.534 0450 0.394 0.3390292 0252 02100188 OM 0123002 0.093 0.001 0.01 0.002 0.054 000 0042 0.036 000 000 0.500.406 0.371 03170.270 0231 01900170 0.125 0000097 0.000 0000 0000 0052 0045 0099 0.034 00900026 0.003 049404160350 0.20 0.250 0212 0100 0153 0.10 0.11 0095 000 0000 00500051 004 0,0300032 0.028 0.021 0021001 0.475 0.396 0.331 0.277 0.22 0.194 0164 0.33 0.116 0.00 0.003 00700060 0.051 0.03 0.007 0.031 0027 0.073 0020 0011 0014 0456 037 0.2 0.258 02150178 019 0124 0.104 0.007 0.07 0.001 0051 004 0.007 0.031 0.025 0.022 0010 009 0084 0012 0.439 0.359 0.294 02420199 0.154 0.125 0.112 0.093 007 0064 0.053 0044 0037003100200022 0.098 00150010010009 0422 0.342 0.278 0.226 0184 0.15001230101 0.00) 0.068 0056 0.046 0.03000320026 0.022 0.000150.000 0.005 0002 04060.326 0.262 0211 0170 0.130 0112 0.0910074 0060 0049 0.000 0.00 0.027 0.022 0.01 0.0150012 0010 0.000 0.007 0.006 0.390 0310 0247 0197 0.150 0.120 0102 0012 0006 0.053 000 0.035 0.028 0.023 0.0190015 000 0.000 0.000 000 0000 0005 0.375 0255 02330194 0140 0.16 0.092 00140050 0047 0038 0.000 0.024 0020 0.0160003 0010 0.000 0.007 0.000 0.005 0008 0381 0.21 0.2200172 0.106 0.034 0065 0053 0042000) 0.025 0.021 0017001 0.01 0.000 0.00 0.00 0.00 0.00 0.003 0347 0.268 0.207 0901 0125 0.0980070 0000 0047 0.037 0.029 0023 0.010001400 0.009 0.007000600050004 0.002 0.002 03330255 0.19 0.150 0.110 0:0900009 0.054 0.042 0033 0.026 0.020 00100012 0010 0.00 0.00 0.005 0.004 0.003 0.002 0.002 0000 0000 0.005 0004 0.003 0.002 0.002 0.002 032102430185 0107 0.002 0.063004000370 029 0.022 0.017 0.01 0.01 0.308 0231 0.174 0.01 0.099 0.075 0057 0.0440033 0.025 0.02000150012 0.000 0.007 0.005 0004 0.003 0.000 0.002 0.002 0001 0.2000142 0.097 0067 0.04 0.002 0.022 0.05 0.011 0000 0.00 0.00 0.003 0.002 0.001 0.001 000 0000 0000 0.000 0.000 0.000 COLO 9950 20 21 SERENRENAS SCIO 23 24 25 20 27 20 29 30 40 BOHIBIT 140-2 Present Value of an annuity of Sinar Periods 1 2 3 4 5 6 7 8 9 10 29 10% MU 159 0.9620.952 0943 0.905 19 0926 090 21 2232 0.909 0.001 0.000385 0.70370 0362 0155 0347 0300 0303260320 0.00 0.00 0 25 1896 ESS 10 1500 1759 1736 1690 1661 1541 2775 2722 162016051505 1500 2673 1542 2624 2.57 2531 152 1509 1692 145 1460 2.37 2.414 2402 2361 2.322 2283 220 2210 2174 2500 2.000 3630 3:50 2357 3240 3770 2014 2012 2011 3.102 3037 2.994 295 2995 2798 2113 2600 269 2.500 2.540 2496 24082042302 2452 120 4212 400 2953 3890 2791 363.6053512 3433 3.352 278 3199 3122 1050 2991 2926 2004 2003 2009 5242 5070 4917 3767 4633 4436 4355 42314 39983.8893.714 25853509 390 2490 23261215257 209210202951 60025796 5552 5380 5200 5033 4.868 4712 45644423 4200 4.160 4.099 3.922 3.812 2.70 2605 3.508 2.470 6733 271 2016 685 6200 5707 5515 52355100 4966 4.799 4659 4432 43414207 40783954 387 372036821814212229 7435 2008 6.902 6.595 6.247 5.995 5.759 5537 5.328 5132 9464772 4607 451 43034563 4.031 3905 3.766 16733566 2063 2050 2024 6710 6.418 6545 5.889 5650 5420 5.216 5.099 4830 4659 44944329 4192 40543923379936230 3.780 3.3067587 7499 2:39 6 BOS 6695 6.207 5900 5587 5.453 5234 5029 530 4656 4400 432 4177 4095390217161656 9305 3063 5384 7534 7361 614 6.492 594 59455660 5421 5197 4988 47934611 4.039 427 4127 2.85 385 1723 9950 92304 BES 8.35 7904 7487 2103 6750 424 0122 5142 5.583 5342 5110 4910 475 45334367 4200 4051 292 2750 105039.999 9.295 86264 73676902 6.6286302 8002 5724 600 5220 5.00 4.802 4.01 402 4265 1300 19523024 TO 10330972 2.108 3.559 1001 7600 7191 6.011 6.462 6.542 58475575 5124 5.092 4.178 675 429 49 495) 1001 389 1165205810300 8.850 30 28242279 6.916604 6.265 5954 5.660 5.405 5162 433 4.7304536 4.357 400 40331 2.3661274 1077 9.00 9122 3.54 0.02275692120 67296.73 6.047 5749 5.475 5.222 4900 47154570431421940593900 12.65989082100590372 B350 8201 202 7.250 6.00 6.467 6120 5818 5534 5.273 5.091 4312460844142434.000 1.920 0034 12.095 150 103369804 950 365 7800 7366 938 6550 698 5.775534 5318 5.07041133035 444203 4.091 130 2462 11470 10.5948 9129 3514 7983740070255.623 6259 5929 5.628 5.353 5101 46704657 4400 42794 35 54029202111264 10836 0.017 9.292 2640 3.07575627102 6681 6302 973 5665 576 5127 491675444292 2003 151 153204200 10-201 9602 8.770 7545 2170 100359 60 5.6965.10 5300 1909000302 DO 1910 47 14 1230 11272 1037 9550 200 205 2715 7230 6792 6.399 0457225.412 5107 1925 90440943 2007 100 1520799 12.550 11600 10.529.2707 8.905348 2734 7280605 604 607357358515102 40 40 507 315 90.625 9823 494721 54337 15.672 04 12.703 11654 90778422730 733076.464 0975.7065675195 100 9161 15143750003 120103109929 8.438 20967372 590001 6119 3901 575.00 520046728 2520 25 16.300 201 ISBY 10995100279231 3.500 750 7400 6.905 510130 5.790.002 521547344534 433041543990 15630040612077 11051 100 94307160270476 6053469525.010 5:502 5223497030430557 1992 16954 1551 13122711158 1190 9370 60 1022 747069365516665.000 550 522929750354301 490 3904 51295517 5235 47600352160905 12292 151727052409 11258 1027497 169074067003556 77 1993 7150 15045332119250757 6642 5233 5.0 5.54852519974750454643472566 1995 97793951 244 76307305 75 20 EDODHRNNNNNNRS 22 23 27 20 30