(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) The management of Melchiori Corporation is considering the purchase of a machine that would cost $310,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $116,000 per year. The company requires a minimum pretax return of 16% on all investment projects.
-The present value of the annual cost savings of $116,000 is closest to:

A) $427,460
B) $696,000
C) $175,448
D) $1,041,462