Outdoor Gear Is Purchasing Equipment Costing $1

Outdoor Gear is purchasing equipment costing $1.2 million that will lower manufacturing costs by $280,000 a year.The equipment will be depreciated over 7 years using straight-line depreciation to a book value of zero.After 7 years,the equipment will be worthless.The discount rate is 14 percent and the tax rate is 35 percent.What is the annual net income?

A) $111,428.57
B) $70,571.43
C) $59,600.00
D) $38,000.00
E) $43,600.00