Cost-Cutting Proposals Massey Machine shop is considering a four year project to improve its production efficiency . Buying a new machine press for $730,000 is estimated to result in $270,000 in annual pretax cost savings. The press falls in MACRS five year class , and it will have a salvage value at the end of the project of $70,000. The press also requies an initial investment in spare parts inventory of $20,000, along with an additional $3,500 in inventory for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 8 percent, should Massey buy and install the machine press? Show all steps.