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

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Finance

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Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,008,000 is estimated to result in $336,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $147,000. The press also requires an initial investment in spare parts inventory of $42,000, along with an additional $6,300 in inventory for each succeeding year of the project. Required: If the shop's tax rate is 34 percent and its discount rate is 17 percent, what is the NPV for this project? (Do not round your intermediate calculations.) O $-138,848.21 $-135,013.81 O $-232,312.76 O $-145,790.62 O $-131,905.80

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