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

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Geary Machine Shop is considering a four-year project to improveits production efficiency. Buying a new machine press for $768,000is estimated to result in $256,000 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 $112,000.The press also requires an initial investment in spare partsinventory of $32,000, along with an additional $4,800 in inventoryfor each succeeding year of the project. Required : If the shop'stax rate is 31 percent and its discount rate is 8 percent, what isthe NPV for this project? (Do not round your intermediatecalculations.)
$59,684.25
$61,469.88
$-37,942.58
$62,668.46
$56,700.03

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Geary Machine Shop is considering a four-year project to improveits production efficiency. Buying a new machine press for $768,000is estimated to result in $256,000 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 $112,000.The press also requires an initial investment in spare partsinventory of $32,000, along with an additional $4,800 in inventoryfor each succeeding year of the project. Required : If the shop'stax rate is 31 percent and its discount rate is 8 percent, what isthe NPV for this project? (Do not round your intermediatecalculations.)$59,684.25$61,469.88$-37,942.58$62,668.46$56,700.03