Exercise 26-2 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information. Materials, labor, and overhead (except depreciation) Depreciation-Machinery Initial investment $ 200,000 Useful life 9 years Salvage value Expected sales per year $ 20,000 10,000 units Selling, general, and administrative expenses Selling price per unit (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. 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 Expenses Income Net cash flow Income Cash Flow $ 45,000 20,000 5,000 $ 10 $ 45,000 20,000 5,000 5 10 Exercise 26-2 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information Initial investment $ 200,000 Useful life 9 years Expected sales per year $ 20,000 10,000 units Salvage value Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Selling price per unit (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. Complete this question by entering your answers in the tabs below. Required A Required B Compute the payback period for this investment. Numerator: Payback Period Denominator: Payback period < Required A Required B