Tamarisk 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 $(1100). Annual cost savings were: $10000 for year 1; 8000 for year 2; and $6000 for year 3. The amount of the initial investment was

Present Value PV of an Annuity

Year of 1 at 12% of 1 at 12%

1 0.893 0.893

2 0.797 1.690

3 0.712 2.402