Cosmopolitan Manufacturing makes designer home decorating items. The company 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 $164,800. The equipment will have an initial cost of $515,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $11,000, what is the annual net income? Ignore income taxes. Multiple Choice $153,800 $64,000 $265,600 $175,800