Paige Company is contemplating the acquisition of a machine that costs $70,000 and promises to reduce annual cash operating costs by $16,000 over each of the next 6 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.)

$70,000 vs. $96,000 0.507.

$70,000 vs. $16,000 6.

$70,000 0.893 vs. $16,000 4.111.

$70,000 vs. $96,000 4.111.

$70,000 vs. $16,000 4.111.