Brown Company Is Considering the Following Investment Assume Straight-Line Depreciation Is Used

Brown Company is considering the following investment:
$\begin{array}{ll}\text { Estimated capital investment } & \$ 220,000 \\\text { Estimated useful life } & 3 \text { years } \\\text { Estimated disposal value in } 3 \text { years } & \$ 5,000 \\\text { Estimated annual savings in cash operating costs(end of year) } & \$ 120,000 \\\text { Minimum desired rate of return } & 12 \% \\\text { Present value of ordinary annuity of one, } 3 \text { periods at } 12 \% & 2.4018 \\\text { Present value of one, } 3 \text { periods at } 12 \% & 0.7118\end{array}$
Assume straight-line depreciation is used.Ignore income taxes.The net present value of the investment is ________.

A) $68,216
B) $71,775
C) $73,216
D) $145,090