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$1,027,200 is estimated to result in $342,400 in annual pretax costsavings. The press falls in the MACRS five-year class (MACRSTable), and it will have a salvage value at the end of the projectof $149,800. The press also requires an initial investment in spareparts inventory of $42,800, along with an additional $6,420 ininventory for each succeeding year of the project.
If the shop's tax rate is 32 percent and its discount rate is 9percent, what is the NPV for this project? (Do not roundyour intermediate calculations.)

$48,830.16
$51,436.80
$-77,215.72
$51,271.67
$46,388.65

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Geary Machine Shop is considering a four-year project to improveits production efficiency. Buying a new machine press for$1,027,200 is estimated to result in $342,400 in annual pretax costsavings. The press falls in the MACRS five-year class (MACRSTable), and it will have a salvage value at the end of the projectof $149,800. The press also requires an initial investment in spareparts inventory of $42,800, along with an additional $6,420 ininventory for each succeeding year of the project.If the shop's tax rate is 32 percent and its discount rate is 9percent, what is the NPV for this project? (Do not roundyour intermediate calculations.) $48,830.16$51,436.80$-77,215.72$51,271.67$46,388.65