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

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Advance Math

CSM Machine Shop is considering a four-year project to improveits production efficiency. Buying a new machine press for $415,000is estimated to result in $154,000 in annual pretax cost savings.The press falls in the MACRS five-year class (MACRS Table) and itwill have a salvage value at the end of the project of $55,000. Thepress also requires an initial investment in spare parts inventoryof $16,000, along with an additional $3,000 in inventory for eachsucceeding year of the project. The shop’s tax rate is 25 percentand its discount rate is 12 percent. Calculate the project's NPV.(Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)

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