cial Management) (BAF 234 FINANCIAL MANAGEMENT) 26. Grand Inc. is considering a five-year project to improve its production efficiency. Buying a new equipment for $540,000 is estimated to result in $187,000 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 $78,000. The equipment requires an initial investment in NWC of $18,000, along with an additional $4,000 in NWC for each succeeding year of the project. If the shop's tax rate is 34 percent and its discount rate is 10 percent should the company buy and install the equipment? MACRS Depreciation Schedule Years. 1 2 3 4 5 20% 32% 19,20% 11,52% 11,52% (15 Points)