Concose Park Department Is Considering a New Capital Investment

Concose Park Department is considering a new capital investment.The following information is available on the investment.The cost of the machine will be $330,000.The annual cost savings if the new machine is acquired will be $85,000.The machine will have a 5-year life,at which time the terminal disposal value is expected to be $32,000.Concose Park Department is assuming no tax consequences.If Concose Park Department has a required rate of return of 11%,which of the following is closest to the present value of the project?

A) $8,245
B) $24,836
C) $3,136
D) $15,840