A firm is considering purchasing equipment that will reduce costs by 40,000. The equipment costs 300,000 and has a salvage value of 50,000 and a life of 7 years. The annual maintenance cost is 6,000. While not in use by the firm, the equipment can be rented to others to generate an income of 10,000 per year. If money can be invested for an 8% return, is the firm justified in buying the equipment?