The management of Rick James Corporation is considering the purchase of a machine that would cost $290,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $102,000 per year. The company requires a minimum pretax return of 13% on all investment projects. Click here to view Exhibit 11B-2 to determine the appropriate discount factor(s) using tables. The present value of the annual cost savings of $102,000 is closest to: $849,012$612,000$195,872$407,796