Why is the initial cashflow 9,460 added from tax and depreciation but not taking into account Total Savings, why is it not 12,504.29 instead?

1. Calculation of net present value (NPV): Initial investment = Cost of purchase of new machine + Change in net working capital - salvage ovalue of old asset - tar =70,000+4,5005,000((8,0005,000)30%)=$68,600