Question: PLEASE SHOW YOUR WORK Persius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in

PLEASE SHOW YOUR WORK Persius Corp is considering the purchase of

PLEASE SHOW YOUR WORK

Persius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $75,000, what is the annual net cash flow? Please show your work and your answer (A, B, C, or D). A. $25,000 B. $35,000 C. $165,000 D. $175,000

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