Massey Machine Shop is considering a four-year project to improve its production efficiency.Six months ago, it contracted with Dr. Wright to provide a thorough study of whether there was a need for this four-year efficiency project.The report was delivered one month ago and it's cost was $30,000.The report suggests that the company should go ahead with the project subject to Massey's financial analysis.Buying a new machine press for $450,000 is estimated to result in $120,000 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 $85,000.At time 0, the press will also require an additional investment in inventory of $9,000.Meanwhile, the accounts payable will increase by $3000.Every other current accounts remain the same. If the company's tax rate is 20% and the discount rate is 12%, should the company accept the project?(30 pts). The MACRS schedule is as follows:

Year

5-year Class

1

20%

2

32%

3

19.2%

4

11.52%

5

11.52%

6

5.76%