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Caradoc Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for 5411,000 is estimated to result in

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Caradoc Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for 5411,000 is estimated to result in $151.000 in annual pro-tax cost savings. The press falls into Class B for CCA purposes (CCA rate of 20% per yean, and will have a salvage value at the end of the project of $55100 The press also requires an initial investment in spare parts inventory of $21.000, along with an additional $3.200 in Inventory for each succeeding year of the project. If the shop's tax rate is 35% and its discount rate is 9% Calculate the NPV of this project. (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omits ign in your response.) NPV $18297 Should the company buy and Install the machine press? Yos O No

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