Outdoor Gear is purchasing equipment costing $1.2 million that will lower manufacturing costs by $280,000 a year. The equipment will be depreciated over 7 years using straight-line depreciation to a book value of zero. After 7 years, the equipment will be worthless. The discount rate is 14 percent and the tax rate is 35 percent. What is the annual net income?

a	$111,428.57
b	$70,571.43
c	$59,600.00
d	$38,000.00
e	$43,600.00