You are considering a four-year project to reduce your firms annual production cost. After doing some research, you are interested in purchasing a robot that will result in $368,000 in annual pretax cost savings. The purchase price of the robot is $1,104,000. Your tax consultant told you that the robot will fall in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $161,000. The robot also requires an initial investment in some electrical supplies of $46,000, along with an additional $6,900 in supplies for each succeeding year of the project. If the applicable tax rate is 33 percent and the appropriate discount rate is 13 percent, should you invest in the project by purchasing the robot? Hint: If the book value of the robot at the end of the project is greater than the salvage value than you will get a tax refund, which means that the after tax salvage of the robot will be greater than the salvage value itself.