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Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $407,000 is estimated to result in

image text in transcribed Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $407,000 is estimated to result in $150,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS schedule), and it will have a salvage value at the end of the project of $51,000. The press also requires an initial investment in spare parts inventory of $15,600, along with an additional $2,600 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 depreciation for each year of the project. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Calculate the aftertax salvage value for the equipment at the end of the project. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Calculate the operating cash flow for each year of the project. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Calculate the NPV. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16

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