19. Cost-Cutting Proposals [LO2] Masters Machine Shop is considering a four- year project to improve its production efficiency. Buying a new.machine press for $385,000 is estimated to result in $145,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will bave a salvage value at the end of the project of $45,000. The press also requires an initial investment in spare parts inventory of $20.000. along with an additional $3,100 in inventory for each succeed: ing. year of the project. If the shop s. tax rate is 35 percent and its discount rate is 9 percent, should the company buy and install the machine. press