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 $141,750. The equipment will have an initial cost of $525,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $14,000, what is the annual net income? Ignore income taxes. Multiple Choice $127,750 $39,550 $155,750 $243,950