45 Cortland 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 $175,000. The equipment will have an initial cost of $500,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $10,000, what is the annual net income? Ignore income taxes. 01:30:16 Multiple Choice $273,000 $185,000 $165,000 $77,000