Grouper Company is considering a capital investment of $355,100 in additional productive facilities. The new machinery is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $39,000 and $69,000, respectively. Grouper has a 10% cost of capital rate, which is the minimum acceptable rate of return on the investment.