Para Co. is reviewing the following data relating to an energy saving investment proposal:

Cost $50,000 Residual value at the end of 5 years 10,000 Present value of an annuity of 1 at 12% for 5 years 3.60 Present value of 1 due in 5 years at 12% 0.57 What would be the annual savings needed to make the investment realize a 12% yield?

a. $ 8,189

b. $11,111

c. $12,306

d. $13,889