Problem 6-13 Cost-Cutting Proposals Starset Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $460,000 is estimated to result in $190,000 in annual pretax cost savings. The press falls in the 5-year MACRS class, and it will have a salvage value at the end of the project of $74,000. The press also requires an initial investment in spare parts inventory of $35,000, along with an additional $3,850 in inventory for each succeeding year of the project. The shop's tax rate is 25 percent and its discount rate is 8 percent. (MACRS schedule) Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Should the company buy and install the machine press? O No O Yes Year 1 2 Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 3 4 5 6 7 8.92 8.93 4.46 8