(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem. ) Clairmont Corporation is considering the purchase of a machine that would cost $150, 000 and would last for 5 years.At the end of 5 years, the machine would have a salvage value of $18, 000.By reducing labor and other operating costs, the machine would provide annual cost savings of $37, 000.The company requires a minimum pretax return of 12% on all investment projects. The present value of the annual cost savings of $37, 000 is closest to:

A) $133, 385
B) $235, 070
C) $185, 000
D) $20, 979