Fairbanks Company is considering the following investment:

Initial capital investment	$255,000
Estimated useful life	3 years
Estimated disposal value in 3 years	$2,500
Estimated annual savings in cash operating costs (end of year)	$145,000
Minimum desired rate of return	10%
Present value of $1, period 1 at 10%	0.909
Present value of $1, period 2 at 10%	0.826
Present value of $1, period 3 at 10%	0.751

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

	A.	$105,470
	B.	$107,348
	C.	$107,970
	D.	$147,500