The Mayor of Elizabethtown, Ontario Is Considering the Purchase of a New

The mayor of Elizabethtown, Ontario is considering the purchase of a new computer system for the municipality's tax department. The system costs $75,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: $\begin{array} { | c | r | r | } \hline \text { Year } && \text { Savings } \\\hline 1 & &\$ 20.000 \\\hline 2 & & 25.000 \\\hline 3 & & 30.000 \\\hline 4 & & 15.000 \\\hline 5 & & 12.000 \\\hline\end{array}$ If Elizabethtown uses a 10% discount rate for capital-budgeting decisions, the net present value of the computer system would be:

A) $489.
B) $4,079.
C) $11,658.
D) $63,342.
E) $79,057.