King Electronics is considering investing in a new component that requires a $100,000 investment in new capital equipment, as well as additional net working capital. The investment is expected to provide cash flows over the next five years. The anticipated earnings and project free cash flows for the investment are found in the table below.

Project Pro Forma Income Statements

	2010	2011	2012	2013	2014
Revenues	$100,000	$105,000	$110,250	$115,763	$121,551
Less: Cost of goods sold	(40,000)	(42,000)	(44,100)	(46,305)	(48,620)
Gross profit	$ 60,000	$63,000	$66,150	$69,458	$72,930
Less: Operating expenses	(20,000)	(21,000)	(22,050)	(23,153)	(24,310)
Less: Depreciation expense	(20,000)	(20,000)	(20,000)	(20,000)	(20,000)
Net operating income	$ 20,000	$22,000	$24,100	$26,305	$28,620
Less: Interest expense	(3,200)	(3,200)	(3,200)	(3,200)	(3,200)
Earnings before taxes	$ 16,800	$18,800	$20,900	$23,105	$25,420
Less: Taxes	(5,040)	(5,640)	(6,270)	(6,932)	(7,626)
Net income	$ 11,760	$13,160	$14,630	$16,173	$17,794

Project Free Cash Flows

	2009	2010	2011	2012	2013	2014
Net operating income		$20,000	$22,000	$24,100	$26,305	$28,620
Less: Taxes		(6,000)	(6,600)	(7,230)	(7,892)	(8,586)
NOPAT		$14,000	$15,400	$16,870	$18,414	$20,034
Plus: Depreciation		20,000	20,000	20,000	20,000	20,000
Less: CAPEX	$(100,000)	-	-	-	-	-
Less: Change in NWC	(5,000)	(250)	(263)	(276)	(289)	6,078
Project free cash flow	$(105,000)	$33,750	$35,138	$36,594	$38,124	$46,112
Invested capital		$105,000	$85,250	$65,513	$45,788	$26,078

Calculate the projects annual economic profits using the invested capital. (Project cost of capital is 11.24%. You dont need to calculate present value of annual economic profit.).