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Masters Machine Shop is considering a four - year project to improve its production efficiency. Buying a new machine press for $ 1 , 0

Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,065,600 is estimated to result in $355,200 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 $155,400 The press also requires an initial investment in spare parts inventory of $44,400, along with an additional $6,660 in inventory for each succeeding year of the project.
If the shop's tax rate is 25 percent and its discount rate is 9 percent, what is the NPV for this project? Multiple choice: A.$78,859.50, B. $81,563.59, C.-50,473.38, D.82,802.48, E.74,916.53
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