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.