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

efficiency. Buying a new machine press for $$748,800$ is estimated to result in $$249,600$

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 $$109,200.$

The press also requires an initial investment in spare parts inventory of $$31,200,$ along

with an additional $$4,680$ in inventory for each succeeding year of the project.

If the shop's tax rate is $23$ percent and its discount rate is $16$ percent, what is the NPV for

this project?

MACRS values are $-$ year $120\mathrm{.}00\%,$ year $232\mathrm{.}00,$ year $319\mathrm{.}20,$ year $411\mathrm{.}52,$ year $511\mathrm{.}52,$ year $65\mathrm{.}76$