Upper Darby Park Department is considering a new capital investment. The following information is ...

Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $150,000. The annual cost savings if the new machine is acquired will be $40,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a required rate of return of 10%, which of the following is closest to the net present value of the project?
A) $1,632
B) $12,418
C) $14,050
D) $150,000
E) $16,050