The following information is available concerning a potential investment project: Initial Investment .............. $77,200 Annual cost savings ............. ? Cost of Capital ................. 20% Life of project ................. 6 years The net present value of this investment was calculated to be $9,263. Calculate the amount of the annual cost savings associated with this investment. Do not use decimals in your answer. 

Future Value of a Lump-Sum

	Rate of interest per period in percent
Periods	3%	4%	5%	6%	8%	9%	10%	12%	14%	16%
3	1.0927	1.1249	1.1576	1.1910	1.2597	1.2950	1.3310	1.4049	1.4815	1.5609
4	1.1255	1.1699	1.2155	1.2625	1.3605	1.4116	1.4641	1.5735	1.6890	1.8106
5	1.1593	1.2167	1.2783	1.3382	1.4693	1.5386	1.6105	1.7623	1.9254	2.1003
6	1.1941	1.2653	1.3401	1.4185	1.5869	1.6771	1.7716	1.9738	2.1950	2.4364
7	1.2299	1.3159	1.4071	1.5036	1.7138	1.8280	1.9487	2.2107	2.5023	2.8262
8	1.2668	1.3686	1.4775	1.5939	1.8510	1.9926	2.1436	2.4760	2.8526	3.2784
9	1.3048	1.4233	1.5513	1.6895	1.9990	2.1719	2.3580	2.7731	3.2519	3.8030
10	1.3439	1.4802	1.6289	1.7909	2.1589	2.3674	2.5938	3.1059	3.7072	4.4114
12	1.4258	1.6010	1.7959	2.0122	2.5182	2.8127	3.1384	3.8960	4.8179	5.9360
15	1.5580	1.8009	2.0789	2.3965	3.1722	3.6425	4.1773	5.4736	7.1379	9.2655
16	1.6047	1.8730	2.1829	2.5404	3.4259	3.9703	4.5950	6.1304	8.1372	10.7480
17	1.6529	1.9479	2.2920	2.6928	3.7000	4.3276	5.0545	6.8660	9.2765	12.4677
18	1.7024	2.0258	2.4066	2.8543	3.9960	4.7171	5.5599	7.6900	10.5752	14.4625
19	1.7535	2.1069	2.5270	3.0256	4.3157	5.1417	6.1159	8.6128	12.0557	16.7765
20	1.8061	2.1911	2.6533	3.2071	4.6610	5.6044	6.7275	9.6463	13.7435	19.4608
21	1.8603	2.2788	2.7860	3.3996	5.0338	6.1088	7.4003	10.8039	15.6676	22.5745
22	1.9161	2.3699	2.9253	3.6035	5.4365	6.6586	8.1403	12.1003	17.8610	26.1864
23	1.9736	2.4647	3.0715	3.8198	5.8715	7.2579	8.9543	13.5524	20.3616	30.3762
24	2.0325	2.5633	3.2251	4.0489	6.3412	7.9111	9.8497	15.1786	23.2122	35.2364
25	2.0938	2.6658	3.3864	4.2919	6.8485	8.6230	10.8347	17.0000	26.4619	40.8742
60	5.8916	10.5196	18.6792	32.9877	101.257	176.031	304.482	897.597	2595.92	7370.20

Present Value of a Lump-Sum

	Rate of interest per period in percent
Periods	3%	5%	6%	8%	9%	10%	12%	14%	15%	20%
3	0.9151	0.8638	0.8396	0.7938	0.7722	0.7513	0.7118	0.6750	0.6575	0.5787
4	0.8885	0.8227	0.7921	0.7350	0.7084	0.6830	0.6355	0.5921	0.5718	0.4823
5	0.8626	0.7835	0.7473	0.6806	0.6499	0.6209	0.5674	0.5194	0.4972	0.4019
6	0.8375	0.7462	0.7050	0.6311	0.5963	0.5645	0.5066	0.4556	0.4323	0.3349
7	0.8131	0.7107	0.6651	0.5835	0.5470	0.5132	0.4523	0.3996	0.3759	0.2791
8	0.7894	0.6768	0.6274	0.5403	0.5019	0.4665	0.4039	0.3506	0.3269	0.2326
9	0.7664	0.6446	0.5919	0.5003	0.4604	0.4241	0.3606	0.3075	0.2843	0.1938
10	0.7441	0.6139	0.5584	0.4632	0.4224	0.3855	0.3220	0.2697	0.2472	0.1615
12	0.7014	0.5568	0.4970	0.3971	0.3555	0.3186	0.2567	0.2076	0.1869	0.1122
15	0.6419	0.4810	0.4173	0.3152	0.2745	0.2394	0.1827	0.1401	0.1229	0.0649
16	0.6232	0.4581	0.3937	0.2919	0.2519	0.2176	0.1631	0.1229	0.1069	0.0541
17	0.6050	0.4363	0.3714	0.2703	0.2311	0.1978	0.1456	0.1078	0.0929	0.0471
18	0.5874	0.4155	0.3503	0.2503	0.2120	0.1799	0.1300	0.0946	0.0808	0.0376
19	0.5703	0.3957	0.3305	0.2317	0.1945	0.1635	0.1161	0.0829	0.0703	0.0313
20	0.5537	0.3769	0.3118	0.2146	0.1784	0.1486	0.1037	0.0728	0.0611	0.0261
21	0.5375	0.3589	0.2942	0.1987	0.1637	0.1351	0.0926	0.0638	0.0531	0.0217
24	0.4920	0.3101	0.2470	0.1577	0.1264	0.1015	0.0659	0.0431	0.0349	0.0126
25	0.4776	0.2953	0.2330	0.1460	0.1160	0.0923	0.0588	0.0378	0.0304	0.0105

Future Value of an Annuity

	Rate of interest per period in percent
Periods	3%	4%	5%	6%	8%	9%	10%	12%	14%	16%
3	3.0909	3.1216	3.1525	3.1836	3.2464	3.2781	3.3100	3.3744	3.4396	3.5056
4	4.1836	4.2465	4.3101	4.3746	4.5061	4.5731	4.6410	4.7793	4.9211	5.0665
5	5.3091	5.4163	5.5256	5.6371	5.8667	5.9847	6.1051	6.3529	6.6101	6.8771
6	6.4684	6.6330	6.8019	6.9753	7.3359	7.5233	7.7156	8.1152	8.5355	8.9775
7	7.6625	7.8983	8.1420	8.3938	8.9228	9.2004	9.4872	10.0890	10.7305	11.4139
8	8.8923	9.2142	9.5491	9.8975	10.6366	11.0285	11.4359	12.2997	13.2328	14.2401
9	10.1591	10.5828	11.0266	11.4913	12.4876	13.0210	13.5795	14.7757	16.0853	17.5185
10	11.4639	12.0061	12.5779	13.1808	14.4866	15.1929	15.9374	17.5487	19.3373	21.3215
12	14.1920	15.0258	15.9171	16.8699	18.9771	20.1407	21.3843	24.1331	27.2707	30.8502
15	18.5990	20.0236	21.5786	23.2760	27.1521	29.3609	31.7725	37.2797	43.8424	51.6595
16	20.1569	21.8245	23.6575	25.6725	30.3243	33.0034	35.9497	42.7533	50.9804	60.9250
17	21.7616	23.6975	25.8404	28.2129	33.7502	36.9737	40.5447	48.8837	59.1176	71.6730
18	23.4144	25.6454	28.1324	30.9057	37.4502	41.3013	45.5992	55.7497	68.3941	84.1407
19	25.1169	27.6712	30.5390	33.7560	41.4463	46.0185	51.1591	63.4397	78.9692	98.6032
20	26.8704	29.7781	33.0660	36.7856	45.7620	51.1601	57.2750	72.0524	91.0249	115.380
21	28.6765	31.9692	35.7193	39.9928	50.4229	56.7645	64.0025	81.6987	104.768	134.841
22	30.5368	34.2480	38.5052	43.3923	55.4568	62.8733	71.4028	92.5026	120.436	157.415
23	32.4529	36.6179	41.4305	46.9958	60.8933	69.5319	79.5430	104.603	138.297	183.601
24	34.4265	39.0826	44.5020	50.8156	66.7648	76.7898	88.4973	118.155	158.659	213.978
25	36.4593	41.6459	47.7271	54.8645	73.1059	84.7009	98.3471	133.333	181.871	249.214
60	163.053	237.991	353.584	533.128	1253.21	1944.79	3034.82	7471.64	18535.1	46057.5

Present Value of an Annuity

	Rate of interest per period in percent
Periods	%	3%	5%	6%	8%	9%	10%	12%	15%	20%
3	2.9703	2.8286	2.7233	2.6730	2.5771	2.5313	2.4869	2.4018	2.2832	2.1065
4	3.9505	3.7171	3.5460	3.4651	3.3121	3.2397	3.1699	3.0374	2.8550	2.5887
5	4.9259	4.5797	4.3295	4.2124	3.9927	3.8897	3.7908	3.6048	3.3522	2.9906
6	5.8964	5.4172	5.0757	4.9173	4.6229	4.4859	4.3553	4.1114	3.7845	3.3255
7	6.8621	6.2303	5.7864	5.5824	5.2064	5.0330	4.8684	4.5638	4.1604	3.6046
8	7.8230	7.0197	6.4632	6.2098	5.7466	5.5348	5.3349	4.9676	4.4873	3.8372
9	8.7791	7.7861	7.1078	6.8017	6.2469	5.9953	5.7590	5.3283	4.7716	4.0310
10	9.7304	8.5302	7.7217	7.3601	6.7101	6.4177	6.1446	5.6502	5.0188	4.1925
12	11.6189	9.9540	8.8633	8.3838	7.5361	7.1607	6.8137	6.1944	5.4206	4.4392
15	14.4166	11.9379	10.3797	9.7123	8.5595	8.0607	7.6061	6.8109	5.8474	4.6755
16	15.3399	12.5611	10.8378	10.1059	8.8514	8.3126	7.8237	6.9740	5.9542	4.7296
17	16.2586	13.1661	11.2741	10.4773	9.1216	8.5436	8.0215	7.1196	6.0472	4.7746
18	17.1728	13.7535	11.6896	10.8276	9.3719	8.7556	8.2014	7.2497	6.1280	4.8122
19	18.0824	14.3238	12.0853	11.1581	9.6036	8.9501	8.3649	7.3658	6.1982	4.8435
20	18.9874	14.8775	12.4622	11.4699	9.8182	9.1286	8.5135	7.4694	6.2593	4.8696
21	19.8880	15.4150	12.8212	11.7641	10.0168	9.2922	8.6487	7.5620	6.3125	4.8913
25	23.4456	17.4132	14.0939	12.7834	10.6748	9.8226	9.0770	7.8431	6.4641	4.9476