Juno Manufacturing Ltd. is considering replacing its existing equipment with an automated machine for $133,950. Juno depreciates its capital assets using the straight-line depreciation method. Juno estimates that the new machine will reduce production costs by $28,500 per year and that it has a useful life of 6 years. What is the net present value if the required rate of return is 8%?

a) $(2,197.35)

b) $0.00

c) $1,909.50

d) $37,050.00