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.