Concose Park Department is considering a new capital investment. The cost of the machine

is $$280,000.$ The annual cost savings if the new machine is acquired will be $$165,000.$ The

machine will have a $3-$year life and the terminal disposal value is expected to be $$35,000.$

There are no tax consequences related to this decision. If Concose Park Department has a

required rate of return of $14\%,$ which of the following is closest to the present value of the

project?

O $$190,880$

$$87,750$

O $$126,755$

$$103,130$