B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $432,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.

Sales of new product	$ 270,000
Expenses
Materials, labor, and overhead (except depreciation)	144,000
DepreciationEquipment	36,000
Selling, general, and administrative expenses	27,000
Income	$ 63,000

(a) Compute the annual net cash flow.

Compute the annual net cash flow