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Master's machine shop is considering a four-year project toimprove its production efficiency. Buying a new machine press for$1,056,000 is estimated to result in $352,000 in annual pretax costsavings. The press falls in the MACRS five-year class , and it willhave a salvage value at the end of the project of $154,000. Thepress also requires an initial investment in spare parts inventoryof $44000, along with an additional $6,600 in inventory for eachsucceeding year of the project. if the shop's tax rate is 24percent and its discount rate is 13 percent, what is the NPV forthis project?
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