Paige Company is contemplating the acquisition of a machine that costs $55,000 and promises to reduce annual cash operating costs by $10,000 over each of the next 7 years. Which of the following is a proper way to evaluate this investment if the company desires a 12% return on all investments? (Round PV factors to 3 decimal places.)

$55,000 0.893 vs. $10,000 4.564.

$55,000 vs. $10,000 7.

$55,000 vs. $70,000 0.452.

$55,000 vs. $70,000 4.564.

$55,000 vs. $10,000 4.564.