Alt's is considering a four-year project to improve its production efficiency. Buying a new machine press for $940,000 is estimated to result in $380,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $160,000. The press also requires an initial investment in spare parts inventory of $40,000, which will be recapped at the end of the project. The shops tax rate is 35 percent and its discount rate is 9 percent. What is the NPV of this machine press?

YEAR	5-year MACRS Recovery Rate
1	20%
2	32%
3	19.2%
4	11.52%
5	11.52%
6	5.76%

Question 1 options:

	-$57,925
	$28,945
	$238,715
	$154,765
	$187,105