Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $777,600 is estimated to result in $259,200 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 $113,400. The press also requires an initial investment in spare parts inventory of $32,400, along with an additional $4,860 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 31 percent and its discount rate is 18 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

$-114,631.11

$-111,584.34

$-183,994.64

$-120,362.66

$-108,899.55