(CHAPTER 10) A factory is considering a four-year project to improve Savings its production efficiency. Buying a new piece of equipment would cost $630,000. It is expected to result in $110,000 in savings, per year, before taxes. This piece of equipment has a 7. year economic life and it would follow the straight line depreciation method. Its salvage value at the end of the project is estimated at $20,000. The equipment also requires an immediate investment in spare parts inventory of $20,000. The company will require additional $500 in inventory in each succeeding year of the project. The company's tax rate is 25 percent. The appropriate discount rate is 9 percent Calculate the annual Operating Cash Flow. HINT: You WILL NOT need to use all numbers given in this problem to answer this question! $92,250 $98,750 $100,800 $105,000 O $108.720