(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) Stern Corporation is considering the purchase of a machine that would cost $270,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $38,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $54,000. The company requires a minimum pretax return of 16% on all investment projects.
-The present value of the annual cost savings of $54,000 is closest to:

A) $14,202
B) $946,093
C) $486,000
D) $248,778