Raven Company is considering the purchase of a new piece of equipment. The equipment costs $230,000, and will have a salvage value of $10,000 after eight years. Using the new piece of equipment will increase Raven's annual cash flows by $50,000. Raven has a hurdle rate of 15%. (The present value annuity factor where interest rate is 15% and 8 years is 4.4873; the present value factor where interest rate is 15% and 8 years is 0.3269) What is the present value of the increase in annual cash flows?