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:

The company's tax rate is $30\%$ and its after$-$tax cost of capital is $16\%.$

Required:

Calculate the annual income tax expense that will arise as a result of this investment.

Calculate the net present value of this investment opportunity.

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