The mayor of MCQ, Queensland, is considering the purchase of a computer system to automate the citys rate collections. The system costs $75,000 and has an estimated life of five years. The mayor estimates the following savings will result if the system is purchased:

Year	Savings
1	$20,000
2	$25,000
3	$30,000
4	$15,000
5	$12,000

If MCQ uses a 10 per cent discount rate for capital budgeting decisions, what is the net present value of the computer system?

A.

$489.

B.

$63,342.

C.

$11,658.

D.

$79,057.

E.

$4,057.