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42. Initial cash cost of investment Estimated annual cash savings Predicted residual value at the end of life Estimated useful life Cost of capital $75,000

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42. Initial cash cost of investment Estimated annual cash savings Predicted residual value at the end of life Estimated useful life Cost of capital $75,000 $18,000 $3,000 2 years 12% If Present Value factor of an annuity of $1 at 12% and 7 years is 4.564 and the present value factor of a payment of SI at 12% and yes is 042at is the total present value ofthe estimated cash infow? A. 4,167 years B. $82,152 C. $1,356 D. $83,508 E. S8,508

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