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Problem 9 - 2 4 NPV and Bonus Depreciation [ LO 2 ] Tanaka Machine Shop is considering a four - year project to improve

Problem 9-24 NPV and Bonus Depreciation [LO 2]
Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $429,000 is estimated to result in $161,000 in annual pretax cost savings. The press qualifies for 100 percent bonus depreciation and it will have a salvage value at the end of the project of $62,000. The press also requires an initial investment in spare parts inventory of $16,700, along with an additional $3,700 in inventory for each succeeding year of the project. The shops tax rate is 22 percent and its discount rate is 9 percent. Calculate the project's NPV.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.

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