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Net Present Value Snow inc, has just completed development of a new cell phone. The new product is expected to produce annual revenues of \\( \\$ 1,400,000 \\), Producing the cell phane requires an imvestment in new equipment, costing \\( \\$ 1,500,000 \\). The cell phane has a projected life cycle of 5 years. After 5 years, the equipment can be sold for \\( \\$ 180,000 \\). Working capital is also expected to increase by \\( \\$ 200,000 \\), which \\( 5 n \\) w will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at \\( \\$ 820,000 \\). The required rate of retum is \8. Required: Two present value tables are peovided: Present Value of a Single Amount and Present Value of an Annuity. Use them as directed in the problem requirements. 1. Prepare a schedule of the projected annual cash flows. If an amount is negative or an outhow, first enter a minus sign ( \\( \ ightarrow \\) ). Snow Inc, Projected Annual Cash Flows 2. Calculate the NPV using only discount factors from the Present Value of a Single Amount table shown in Present value Tables. Round the present value calculation and vour final answer to the nearest whole soliar, The Nirv using the present value of a single amount table is 1 3. Calculate the NPV using discount factors from both of the tables shown in Present value Tables, Round the present value calculation and wour final answer to the nearest whole dollar: The NPV using the annuity tables is 1 Net Fesenk Value Show Inc. has just compieted development of a new cell phone. The rew product is eupected to produce annuat revenues of \\( 11,400,000 \\). Producing the cell phene requirea capital is also expected to increase by \\( \\$ 200,000 \\), which snow will recover by the end of the new product ite cycle. Annual cash eperating expenses are estimated at \\( \\$ 820,000 \\), The required rate of return is 8w: Reguired: your final answer to the nearest whole dollar The hav using the present valve of a single ameunt tabie is 1 3. Calculate bie NPV using discount factors from both of the tabies shown in Fresent Value fables. flound the present value cafculatien and rour final ansmer to the nearest whole dellet, The Nry using the annitr tables is 1