Below Are Two Potential Investment Alternatives Assume Straight- Line Depreciation in All Computations, and Ignore Income

Below are two potential investment alternatives: $\begin{array}{lll}&X&Y\\\text { Initial capital investment } & \$ 180,000 & \$ 270,000 \\\text { Estimated useful life } & 3 \text { yrs. } & 3 \text { yrs. } \\\text { Estimated teminal salvage value } & -0- & -0- \\\text { Estimated annual savings in cash } & & \\\text { oper atingcosts } & \$ 75,000 & \$ 120,000 \\\text { Minimum desired rate of return } & 10 \% & 12 \%\end{array}$ Assume straight- line depreciation in all computations, and ignore income taxes. The net present value in investment Y is:

A) $120,000
B) $184,584
C) $18,216
D) $(492)