Paige Company Is Contemplating the Acquisition of a Machine That

Paige Company is contemplating the acquisition of a machine that costs $50,000 and promises to reduce annual cash operating costs by $11,000 over each of the next six years. Which of the following is a proper way to evaluate this investment if the company desires a 12% return on all investments?

A) $50,000 versus -$11,000 × 6.
B) $50,000 versus -$66,000 × 0.507.
C) $50,000 versus -$66,000 × 4.111.
D) $50,000 versus -$11,000 × 4.111.
E) $50,000 × 0.893 versus -$11,000 × 4.111.