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 $145,000 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: Annual revenues and costs: Sales revenues Variable expenses $360,000 $ 200,000 $ 86,000 Fixed out-of-pocket operating costs The company's tax rate is 30% and its after-tax cost of capital is 17%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate the net present value of this investment opportunity.

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