CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $500,000 is estimated to result in $199,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $62,500. The press also requires an initial investment in spare parts inventory of $22,500, along with an additional $4,500 in inventory for each succeeding year of the project. The shop