A manager is considering the following investment:

Estimated capital investment$270,000

Estimated useful life3 years

Estimated disposal value in 3 years$10,000

Estimated annual savings in cash operating $150,000

Minimum desired rate of return12%

Present value of ordinary annuity, 3 periods at 12%2.4018

Present value of one, 3 periods at 12%0.7118

Assume straight-line depreciation is used. Ignore income taxes.The net present value of the investment is ________.

Group of answer choices

$50,310

$57,428

$90,270

$97,388