Gantner Company is considering a capital investment of $300,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual cash inflows are expected to be $87,000. Gantner has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment