Ivanhoe Manufacturing is considering the purchase of new computerized equipment. The machine costs $91800 and would generate $23760 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $5400 salvage value. Ivanhoe's required rate of return is 16%.

Using the present value tables, the machine's net present value is nearest (round to the nearest dollar)

a. $118800.

b. $-14003.

c. $-11432.

d. $77797.