The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by $25\%.$ Currently, sales are $$750,000$ per year, and cost of sales are $55\%$ of sales. The equipment is expected to last for $5$ years with no residual value. The cash outflow expected at the beginning of the year is $$357,500.$

Ignoring income taxes, what is the estimated annual net operating income increase$/$decrease$?$

Multiple Choice

$$43,125$ decrease

$$12,875$ increase

$$54,125$ increase

$$9,375$ decrease