Fulmar Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new high-efficiency washing machines that will allow for the laundry's status to be checked via smartphone. Fulmar estimates the cost of the new equipment at $191,000. The equipment has a useful life of 9 years. Fulmar expects cash fixed costs of $78,000 per year to operate the new machines, as well as cash variable costs in the amount of 5% of revenues. Fulmar evaluates investments using a cost of capital of 10%.