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Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying a...

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Accounting

Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for
$450,000 is estimated to result in $180,000 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 $76,000. Refer to Table 8.3. The press also requires an initial investment in spare parts
inventory of $18,000, along with an additional $2,300 in inventory for each succeeding year of the project. The shop's tax rate is 22
percent and the project's required return is 9 percent. Calculate the NPV of this project.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
NPV
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