Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $595,200 is estimated to result in $198,400 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 $86,800. The press also requires an initial investment in spare parts inventory of $24,800, along with an additional $3,720 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 31 percent and its discount rate is 16 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

$-64,620.58

$-62,429.44

$-121,471.04

$-67,851.61

$-61,389.55