Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $604,800 is estimated to result in $201,600 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 $88,200. The press also requires an initial investment in spare parts inventory of $25,200, along with an additional $3,780 in inventory for each succeeding year of the project.

Required :If the shop's tax rate is 35 percent and its discount rate is 13 percent, what is the NPV for this project?(Do not round your intermediate calculations.)

rev: 09_18_2012

$-35,506.64

$-33,536.52

$-100,057.40

$-37,281.98

$-33,731.31