Tanaka Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $400,000 is estimated to result in $154,000 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 $54,000. The press also requires an initial investment in spare parts inventory of $23,000, along with an additional $3,250 in inventory for each succeeding year of the