A Cost-Cutting Project Has an Initial Cost of $1,200 and Annual

A cost-cutting project has an initial cost of $1,200 and annual costs of $380 for each year of the project's 4-year life.The equivalent annual cost for this project is best described as the:

A) 4-year annuity payment that has the same net present value as the project's costs given a stated discount rate.
B) 4-year total of all costs divided by four.
C) annual sales needed to offset these additional costs.
D) lump sum payment at Time 0 that is equal to these additional costs at a given discount rate.
E) 4-year average aftertax cash flow resulting from the annual costs.