COOR Ltd Is Buying a New Sewing Machine for $9 000

Multiple Choice

COOR Ltd. is buying a new sewing machine for $9 000. It can be sold at the end of its 10 year service life for $800. The firm's MARR is 10%. What is the minimum annual savings that the machine must yield in order to break even on the investment?

A) $2 012
B) $1 415
C) $1 815
D) $1 212
E) $1 692