The following information applies to the questions displayed below.] The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 5%. Currently, sales are $850,000 per year and variable costs are 60% of sales. The equipment is expected to last for 6 years with no residual value. The cash outflow expected at the beginning of the year is $435,000. y how much would Terme's annual gross profit increase if the investment is undertaken? Multiple Choice $127,500 $85,000 $212,500 $850,000