Geller Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $420,000 is estimated to result in $165,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $71,000. The press also requires an initial investment in spare parts inventory of $15,000, along with an additional $2,000 in inventory for each succeeding year of the project. The shops tax rate is 25 percent and the project's required return is 9 percent. Refer to Table 8.3. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

RECOVERY PERIOD CLASS TABLE 8.3 Depreciation under Modified Accelerated Cost Recovery System (MACRS) YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS 15 YEARS 20 YEARS 1 2 .3333 4445 1481 .0741 3 .2000 3200 .1920 1152 1152 .0576 4 .1429 2449 .1749 .1249 .0893 .0892 .0893 .0446 5 6 7 8 9 10 11 12 13 14 .1000 .1800 1440 .1152 .0922 .0737 .0655 .0655 .0656 .0655 .0328 .0500 .0950 .0855 .0770 .0693 .0623 .0590 .0590 .0591 .0590 .0591 .0590 .0591 .0590 .0591 .0295 .03750 07219 .06677 .06177 .05713 .05285 .04888 .04522 .04462 .04461 .04462 .04461 .04462 .04461 .04462 .04461 .04462 .04461 .04462 .04461 .02231 15 16 17 18 19 20 21 Depreciation is expressed as a percent of the asset's cost. These schedules are based on the IRS publication 946. How to Depreciate Property and other details on depreciation are presented later in the chapter. Note that five-year depreciation actually carries over six years because the IRS assumes purchase is made in midyear