Suppose Prentice Hall is considering investing in warehouse-management software that costs \(\$ 500,000\) and should lead to cost savings of \(\$ 120,000\) a year for its 5 -year life. If Prentice Hall has a \(12 \%\) required rate of return, what is the net present value of the software investment?

a. \((\$ 67,400)\)

b. \((\$ 88,040)\)

c. \(\$ 411,960\)

d. \(\$ 432,600\)