Novak Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(900). Annual cost savings were: $12000 for year 1:10000 for year 2; and $8000 for year 3. The amount of the initial investment was PV of an Annuity of 1 at 12% Year Present Value of 1 at 12% 0.893 0.797 0.712 1 2 3 0.893 1.690 2.402 $23482 $25282 $24920. $23120