What is the annual total income

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Reference no: EM13146968

Sorius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flows of $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $75,000, what is the annual net income? Ignore income taxes.

a. $25,000

b. $35,000

c. $165,000

d. $175,000

Reference no: EM13146968

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