Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $931,200 is estimated to result in $310,400 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 $135,800. The press also requires an initial investment in spare parts inventory of $38,800, along with an additional $5,820 in inventory for each succeeding year of the project.

Required :

If the shop's tax rate is 35 percent and its discount rate is 8 percent, what is the NPV for this project? (Do not round your intermediate calculations.)

rev: 09_18_2012

	$57,929.97
	$60,095.05
	$-61,180.87
	$60,826.47
	$55,033.47