Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,104,000 is estimated to result in $368,000 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 $161,000. The press also requires an initial investment in spare parts inventory of $46,000, along with an additional $6,900 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 31 percent and its discount rate is 17 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

$-141,673.47

$-137,473.89

$-243,562.78

$-148,757.14

$-134,589.80