Paige Company is contemplating the acquisition of a machine that costs $56,000 and promises to reduce annual cash operating costs by $15,000 over each of the next 5 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.)

$56,000 vs. $15,000 3.605.

$56,000 vs. $75,000 3.605.

$56,000 0.893 vs. $15,000 3.605.

$56,000 vs. $75,000 0.567.

$56,000 vs. $15,000 5.