Union Jack Company Is Considering the Purchase of Equipment That

Union Jack Company is considering the purchase of equipment that costs $60,000 and promises to reduce annual cash operating costs by $10,000 over each of the next five years. Which of the following is a proper way to evaluate this investment if the company desires a 10% return on all investments?

A) $60,000 vs. $10,000 x 5.
B) $60,000 vs. $60,000 x 0.621.
C) $60,000 vs. $60,000 x 3.791.
D) $60,000 vs. $10,000 x 3.791.
E) $60,000 x 0.909 vs. $10,000 x 3.791.