(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) Sue Falls is the president of Sports, Inc. She is considering buying a new machine that would cost $14,125. Sue has determined that the new machine promises an internal rate of return of 12%, but Sue has misplaced the paper which tells the annual cost savings promised by the new machine. She does remember that the machine has a projected life of 10 years. Based on these data, the annual cost savings are:

A) It is impossible to determine from the data given.
B) $1,412.50
C) $2,500.00
D) $1,695.00