question 48

Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. The company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $145,800. The equipment will have an initial cost of $540,000 and have a 5 -year life. If the salvage value of the equipment is estimated to be $22,000, what is the annual net cash flow? Multiple Choice $167,800 $123,800 $42,200