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Shimano Company has an opportunity to manufacture and sell one of two new products for a five-year period. The company's tax rate is 30% and its after-tax cost of capital is 12%. The cost and revenue estimates for each product are as follows: The equipment pertaining to both products has a useful life of five years and no salvage value. The company uses the straight-line. depreciation method for financlal reporting and tax purposes. At the end of five years, each product's working capital will be released for investment elsewhere within the company. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the oppropriate discount factor(s) using tables. Required: 1. Calculate the annual income tax expense for each of years 1 through 5 thot will arise if Product A is introduced. 2. Calculate the net present value of the investment opportunity pertaining to Product A. (Round your Intermedlate calculations and final answer to the nearest whole dollar.) 3. Calculate the annual income tox expense for each of years 1 through 5 that will arise if Product 8 is introduced. 4. Calculate the net present value of the investment opportunity pertaining to Product B. (Round your Intermedlate calculations and final answer to the nearest whole dollar.) 5-a. Calculate the profitability index for Product A and Product B. (Round your final answers to 3 decimal places) 5.b. Based on the profitability index of the two products, which one should the company pursue? 1. Calculate the annual income tax expense for each of years 1 through 5 that will arise if Product A is introduced. 2. Calculate the net present value of the investment opportunity pertaining to Product A. (Round your Intermedlate calculation: final answer to the nearest whole dollar.) 3. Calculate the annual income tax expense for each of years 1 through 5 that will arise If Product B is introduced. 4. Calculate the net present value of the investment opportunity pertaining to Product B. (Round your intermedlate calculation final answer to the nearest whole dollar.) 5-a. Calculate the profitability index for Product A and Product B. (Round your final answers to 3 decimal places) 5-b. Based on the profitability index of the two products, which one should the company pursue

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