R&R Company Purchased Some Equipment 3 Years Ago A) $9239
B) $10014

R&R Company purchased some equipment 3 years ago. The company's required rate of return is 12% and the net present value of the project was $(550) . Annual cost savings were: $5000 for year 1; $4000 for year 2; and $3000 for year 3. The amount of the initial investment was $\begin{array}{rrr}& \text { Present Value } & \text { PV of an Annuity } \\\text { Year } & \text { of } 1 \text { at } 12 \% & \text { of } 1 \text { at } 12 \%\\1 & .893 & .893 \\2 & .797 & 1.690 \\3 & .712 & 2.402\end{array}$

A) $9239.
B) $10014.
C) $9789.
D) $10339.