Quary Company is considering an investment in machinery with the following information.

Initial investment $ $254,000$ Materials, labor, and overhead $($except depreciation$)$ $ $57,150$

Useful life $9$ years Depreciation$$Machinery $26,000$

Salvage value $ $20,000$ Selling, general, and administrative expenses $6,350$

Expected sales per year $12,700$ units Selling price per unit $ $10$

$($a$)$ Compute the investment$$s annual income and annual net cash flow.

$($b$)$ Compute the investment$$s payback period.