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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

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 DepreciationMachinery 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 investments annual income and annual net cash flow. (b) Compute the investments payback period.

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