Walton Machine Shop is considering a three-year project to improve its production efficiency. Buying (plus shipping and installation) a new machine press for $400,000 is estimated to result in $195,000 in annual incremental revenue and $30,000 in annual incremental variable costs. The press falls in the MACRS three-year class (as per the following schedule), and it will have a salvage value at the end of the project of $65,000. The press also requires an initial investment in spare parts inventory of $18,000, along with an additional $3,000 in inventory for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 percent, should the company buy and install the machine press? (Show all the work clearly including NCS, NWC, OCF and the annual cash flows in the Excel file for full or partial credit). Year MACRS Rate 1 33.33% 2 44.45% 3 14.81% 4 7.41%