Tanaka Machine Shop is considering a four$-$year project to improve its production efficiency. Buying a new machine press for $$550,000$ is estimated to result in $$230,000$ in annual pretax cost savings. The press falls in the MACRS five$-$year class, and it will have a salvage value at the end of the project of $$93,000.$ Refer to Table $8\mathrm{.}3.$ The press also requires an initial investment in spare parts inventory of $$28,000,$ along with an additional $$3,300$ in inventory for each succeeding year of the project. The shop's tax rate is $23$ percent and the project's required return is $9$ percent. Calculate the NPV of this project.

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

NPV

Table $8\mathrm{.}3$ Depreciation under Modified Accelerated Cost Recovery System $($MACRS$)$

$\backslash$table$[[$Year$,,,$Recovery,Period Class,,$],[1,\backslash$table$[[3$ Years$],[\mathrm{.}3333]],5$ Years,$7$ Years,$10$ Years,$15$ Years,$20$ Years$],[2,\mathrm{.}4445,\mathrm{.}3200,\backslash$table$[[\mathrm{.}1429],[\mathrm{.}7449]],\mathrm{.}1000,\mathrm{.}0500,\mathrm{.}03750],[3,\mathrm{.}1481,\mathrm{.}1920,\backslash$table$[[\mathrm{.}2449],[\mathrm{.}1749]],\mathrm{.}1800,\mathrm{.}0950,\mathrm{.}07219],[4,\mathrm{.}0741,\mathrm{.}1152,\backslash$table$[[\mathrm{.}1749],[\mathrm{.}1249]],1440,\mathrm{.}0855,\mathrm{.}06677],[5,,\mathrm{.}1152,\backslash$table$[[\mathrm{.}1249],[\mathrm{.}0893]],\mathrm{.}1152,\mathrm{.}0770,1.06177],[6,,0576,\mathrm{.}0893,\mathrm{.}0922,\mathrm{.}0693,\mathrm{.}05713],[7,,,\mathrm{.}0892,\mathrm{.}0737,\mathrm{.}0623,\mathrm{.}05285],[8,,,\mathrm{.}0893,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04888],[9,,,\mathrm{.}0446,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04522],[10,,,,\mathrm{.}0656,\mathrm{.}0591,\mathrm{.}04462],[11,,,,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04461],[12,,,,\mathrm{.}0328,\mathrm{.}0591,\mathrm{.}04462],[13,,,,,\mathrm{.}0590,\mathrm{.}04461],[14,,,,-,\mathrm{.}0591,\mathrm{.}04462],[15,,,,,\mathrm{.}0590,\mathrm{.}04461],[16,,,,,\mathrm{.}0591,\mathrm{.}04462],[17,,,,,$:$0295,\mathrm{.}04461],[18,,,,,,\mathrm{.}04462],[19,,,,,,\mathrm{.}04461],[20,,,,,,\mathrm{.}04462],[21,,,,,,\mathrm{.}04461],[,,,,,\mathrm{.}02231]]$

Depreciation is expressed as a percentage of the asset's initial cost. These schedules are based on IRS Publication $946,$ entitled Ho depreciation actually carries over six years because the IRS assumes the purchase is made midyear.