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.

In Excel temlate $($Tab Q$6),$ show how you calculate each year's cash flow for the project and NPV$.($Excel parts: $10$ points$)$

Calculate the NPV of this project. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

An MACRS table with all $3$ schedules.

Equipment Life $($Years$)$

Year $357$

$133\mathrm{.}33\%20\mathrm{.}00\%14\mathrm{.}29\%$

$244\mathrm{.}45\%32\mathrm{.}00\%24\mathrm{.}49\%$

$314\mathrm{.}81\%19\mathrm{.}20\%17\mathrm{.}49\%$

$47\mathrm{.}41\%11\mathrm{.}52\%12\mathrm{.}49\%$

$511\mathrm{.}52\%8\mathrm{.}92\%$

$65\mathrm{.}76\%8\mathrm{.}92\%$

$78\mathrm{.}92\%$

$84\mathrm{.}46\%$