Masters Machine Shop is considering a four$-$year project to improve its

production efficiency. Buying a new machine press for $$844,800$ is estimated

to result in $$281,600$ 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 $$123,200.$ The press also requires an initial investment in

spare parts inventory of $$35,200,$ along with an additional $$5,280$ in inventory

for each succeeding year of the project.

If the shop's tax rate is $25$ percent and its discount rate is $12$ percent, what is

the NPV for this project?

Multiple Choice

$$-924\mathrm{.}19$

$$1,690\mathrm{.}87$

$$-92,906\mathrm{.}13$

$$-970\mathrm{.}40$

$$-877\mathrm{.}99$