Use the following information for questions 13 and 14. Saigon Green is considering buying some new equipment to boost sales. Equipment investment is $ 500,000, applying straight line depreciation and useful life of equipment is 5 years. The profitability of the company is 15%. Below is the company's expected annual earnings report.

Sales Revenue	$ 500,000
Cost does not include depreciation	$ 300,000
Depreciation	$ 100,000
The total cost	$ 400,000
Taxable income	$ 100,000
Income tax (20%)	$ 20,000
Net income	$ 80,000

13. Estimated annual cash flow is _____. a. $ 120,000 b. $ 180,000 c. $ 110,000 d. $ 100,000

14. The present value of the annual tax savings from depreciation is _____. a. $ 80,000 b. $ 67,043 c. $ 81,584 d. $ 94,822