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Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine...

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Finance

Geary Machine Shop isconsidering a 4-year project to improve its production efficiency.Buying a new machine press for $563637 is estimated to result in$178039 in annual pretax cost savings. The press falls in the MACRSfive-year class (Refer to the MACRS table on page 277), and it willhave a salvage value at the end of the project of $116017. Thepress also requires an initial investment in spare parts inventoryof $62990, along with an additional $7908 in inventory for eachsucceeding year of the project. If the shop's tax rate is 0.34 andits discount rate is 0.09, what is the total cash flow in year 4?(Do not round your intermediate calculations.)

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