XYZ Co. is considering a four-year project to improve its production efficiency. Buying a new machine for $574,585 is estimated to result in $199,847 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 $73,519. The press also requires an initial investment in spare parts inventory of $23,202, along with an additional $3,349 in inventory for each succeeding year of the project, with full recovery at the end of year 4. If the shop's tax rate is 35 percent and its discount rate is 14 percent, what is the NPV?

According to the IRS, the five-year MACRS percentages for depreciation are 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76% for years 1 through 6, respectively.