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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

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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 $153,000. The equipment will have an initial cost of $510,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $27,000, what is the annual net income? Ignore income taxes. Multiple Choice O $126,000 O 0 $56,400 o o O $249.600 0 $180,000

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