W Policies - 4 QU Mu -rent Attempt in Progress Cingbird 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 $(2500). Annual cost savings were: $27000 for year 1: 22000 for year 2; and $16000 for year 3. The amount of the initial investment was Q ME M Present Value PV of an Annuity of 1 at 12% of 1 at 12% Year 1 0.893 o M 0.893 2. 0.797 1.690 3 0.712 2.402 C M M O $55537 M O $50344 O $55344. O $50537 M Save for Later