Disraeli Gears Inc. manufactures latke$-$shaped gears. The company is considering the purchase of a new machine press for $$960,000.$ The press has a four$-$your life and is estimated to result in $$320,000$ 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 $$140,000.$ The press also requires an initial investment of $$40,000$ in spare parts for inventory. An additional $$6,000$ in inventory will be required for each succeeding year of the project. All investments in inventory will be recovered at the end of the project.

If the shop's tax rate is $32$ percent and its discount rate is $18$ percent, what is the NPV for this project? $($Do not round your intermediate calculations.$)$

HINT: Calculate the depreciation for each year and use it to get the after tax$-$salvage value. Next, calculate OCF using the annual depreciation and then construct CFFA for each year. Now discount all cash flows to get the NPV$.$