Consider a $12,000 Machine That Will Reduce After-Tax Operating Costs

Consider a $12,000 machine that will reduce after-tax operating costs by $2,500 per year over a five-year period. Assume no changes in net working capital and a salvage value of zero. Further
Assume that the machine belongs in a 20% CCA class, a marginal tax rate of 34%, and a required
Return of 10%. The project NPV is:

A) $73
B) $449
C) $689
D) $827
E) $1,235