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 23 percent and its discount rate is 8 percent, what is the NPV for this project?

Multiple Choice

• $91,847.97

• $93,812.17

• -$14,201.94

• $96,440.37

• $87,255.57