Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $883,200 is estimated to result in $294,400 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 $128,800. The press also requires an initial investment in spare parts inventory of $36,800, along with an additional $5,520 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 34 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

$-48,816.00

$-45,939.00

$-142,934.53

$-51,256.80

$-46,375.20