Please help solve the Questions 2 and 3. DO NOT USEthe below pasted SolutionInn previous response seen below, it is incorrect!

Tatsumi Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $4,050,000. Producing the printer requires an investment in new equipment costing $4,320,000. The printer has a projected life cycle of 5 years. After 5 years, the equipment can be sold for $540,000. Working capital is also expected to decrease by $540,000, which Tatsumi will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $2,430,000. The required rate of return is 8%.

Required:

1. Prepare a schedule of the projected annual cash flows.

Year Item 0 Equipment Working capital Total 1-4 Revenues 5 Operating expenses Total Revenues Operating expenses Salvage Recovery of working capital Total 40 Cash Flow -4,320,000 540,000 -4,860,000 4,050,000 2,430,000 1,620,000 4,050,000 2,430,000 540,000 540,000 2,700,000 2. Calculate the NPV using only discount factors from Exhibit 128.1 3. Calculate the NPV using discount factors from both Exhibits 128.1 and 128.2