Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,065,600 is estimated to result in $355,200 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 $155,400. The press also requires an initial investment in spare parts inventory of $44,400, along with an additional $6,660 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 32 percent and its discount rate is 13 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

a) $-51,574.06

b) $-48,102.89

c) $-164,777.62

d) $-54,152.76

e) $-48,995.36

Property Class Year Three-Year 33.33% 44.45 14.81 7.41 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Five-Year 20.00% 32.00 19.20 11.52 11.52 5.76 2 4 5 6 7 8