Sheffield Company is considering a capital investment of $401,400 in additional equipment. The new equiptment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $38,000 and $78,000, respectively. Sheffield requires a 10% return on all new investments. Present value of an annuity of 1 period 8 8% 5.74664 9% 5.53482