Barkley Inc. is considering a three$-$year project to improve its

production efficiency. Buying a machine press for $$1,000,000$ is

estimated to result in $$400,000$ in annual pre$-$tax cost savings. The

machine falls into Class $8$ for CCA purposes $($CCA rate of $20$ percent

per year$),$ and it will have a salvage value at the end of the project of

$$448,000.$ The machine also requires an initial investment in spare

parts inventory of $$50,000,$ that will be regained at the end of the

project. If the tax rate is $40$ percent and its discount rate is $10$ percent,

should Barkley buy the machine?