Taylor Company is considering the purchase of some labor-saving equipment for its packaging department. The equipment is expected to result in labor cost savings of $40,000 per year for the expected five-year life of the equipment. The cost of the equipment is $110,000 and the desired rate of return is 6%.

The NPV of the investment for Taylor Company is _____.

?a.?$ 79,558

?b.?$ 27,434

?c.?$ 147,434

?d.?$ 45,000