Bowman Corporation is considering an investment in special-purpose equipment to enable the company to obtain a four-year government contract for the manufacture of a special item. The equipment costs $194,000 and would have no salvage value when the contract expires at the end of the four years. Estimated annual operating results of the project are as follows: spect or the manufacture of a $316,000 Revenue from contract sales Expenses other than depreciation $ Depreciation (straight-line basis) 48,500 Increase in net income from 219,000 267,500 $48,500 contract work All revenue and all expenses other than depreciation will be received or paid in cash in the same period as recognized for accounting purposes