Tanaka Machine Shop is considering a four$-$year project to improve its production

efficiency. Buying a new machine press for $$415,000$ is estimated to result in $$163,000$ 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 $$63,000.($MACRS schedule$)$ The press also

requires an initial investment in spare parts inventory of $$26,000,$ along with an

additional $$3,400$ in inventory for each succeeding year of the project. The shop's tax

rate is $21$ percent and its discount rate is $8$ percent. Calculate the NPV of this project. $($Do

not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

NPV

Should the company buy and install the machine press?

No

Yes