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

Initial investment	$ 263,000		Materials, labor, and overhead (except depreciation)	$ 59,175
Useful life	9	years	DepreciationMachinery	27,000
Salvage value	$ 20,000		Selling, general, and administrative expenses	6,575
Expected sales per year	13,150	units	Selling price per unit	$ 10

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

Supervision expenses	Allocation Base	Percent of Allocation Base			Cost to be Allocated	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals
Utilities	Allocation Base	Percent of Allocation Base			Cost to be Allocated	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals
Insurance	Allocation Base	Percent of Allocation Base			Cost to be Allocated	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals