Capital Budgeting Problem $$ with Taxes

A framing shop is at capacity. Currently, the bottleneck is the framing press. They are considering purchasing a new press. This would allow them to increase production of frames. Facts are as follows:

Cost of New Press: $$100,000$

Operating Cost of new press $($fixed$)$: $$10,000/$year

Units that could be produced: $4,000/$year

Selling Price per unit: $$25$

VC per unit: $$15$

The press qualifies for $7$ year MACRS and the framing shop$$s cost of capital is $12\%$ and tax rate is $40\%.$ The company plans to dispose the new press at the end of the fifth year for $$10,000.$ Assume that new press will be purchased at the beginning of the year. All other cash flows occur at the end of the year.

Required:

Compute the NPV of this project, using a five$-$year analysis. Using the NPV criterion, is this project desirable?