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Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. The company is considering
the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flows of
\$169,650. The equipment will have an initial cost of \$585,000 and have a 5-year life. If the salvage value of the equipment is estimated to
be \$25,000, what is the annual net income? Ignore income taxes.
Multiple Choice
\$144,650
\$281650
\$194,650
\$57,650