Grenada Company Is Contemplating the Acquisition of a Machine That

Grenada Company is contemplating the acquisition of a machine that costs $50,000 and promises to reduce annual cash operating costs by $11,000 over each of the next six years.

Which of the following is a proper way to evaluate this investment if the company desires a 12% return on all investments?

A) $50,000 versus - $11,000 * 6.
B) $50,000 versus - $66,000 * 0.507.
C) $50,000 versus - $66,000 * 4.111.
D) $50,000 versus - $11,000 * 4.111.
E) $50,000 *0.893 versus - $11,000 * 4.111.