Braxton Manufacturing Is Considering the Purchase of New Computerized Equipment

Multiple Choice

Braxton Manufacturing is considering the purchase of new computerized equipment.The machine costs $85,000 and would generate $22,000 in annual cost savings over its 5-year life.At the end of 5 years, the equipment would have a $5,000 salvage value.Braxton's required rate of return is 12%.Using the interest tables, the machine's net present value is nearest

A) ($2,857) .
B) ($5,694) .
C) $79,306.
D) $110,000.