Exercise 24-2 (Algo) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information. Initial investment $ 245,000 Useful life Salvage value Expected sales per year 9 years $ 20,000 12,250 units Materials, labor, and overhead (except depreciation) Depreciation-Machinery $ 55,125 25,000 Selling, general, and administrative expenses Selling price per unit 6,125 $10 (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's annual Income and annual net cash flow. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow 000 Income- Cash Flow 122,500 55,126 25.000 00 6,125 (86,250) 0.0 122,500 Required B > Exercise 24-2 (Algo) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information. Initial investment $ 245,000 Useful life Salvage value Expected sales per year 9 years $ 20,000 12,250 units Materials, labor, and overhead (except depreciation) Depreciation-Machinery $ 55,125 25,000 Selling, general, and administrative expenses Selling price per unit 6,125 $10 (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's annual Income and annual net cash flow. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow 000 Income- Cash Flow 122,500 55,126 25.000 00 6,125 (86,250) 0.0 122,500 Required B >