Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Albernie Ltd. purchased a CCA Class 8 (CCA rate of 20%) item of equipment for $90,000. The equipment was the only item in the Class 8 capital cost allowance pool. The equipment is expected to generate savings in the amount of $40,000 per year. The company uses straight-line depreciation, estimates a 3 year useful life with $20,000 salvage value for the new equipment. The tax rate is 35%, and Albernie has a required rate of return of 9.0%.
-What is present value of the after-tax savings that Albernie Ltd. expects during the useful life of the equipment?

A) $65,814
B) $101,252
C) $81,257
D) $50,370
E) $42,188