Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $844,800 is estimated to result in $281,600 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 $123,200. The press also requires an initial investment in spare parts inventory of $35,200, along with an additional $5,280 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 33 percent and its discount rate is 11 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

rev: 09_18_2012

$-4,897.85

$-2,429.34

$-101,440.06

$-5,142.74

$-4,652.96