Firm B is considering purchasing new equipment for $220,000. They expect the machine to have a useful life of 10 years and a residual value of $12,000. The machine would provide savings of approximately $31,500 each year. If Firm B requires a 5% rate of return on its investments, what is the net present value (NPV) of the equipment?

Group of answer choices

$30,611

$23,243

$95,000

($139,273)