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I need the solution or computation Boyertown Industrial Tools is considering a three-year project to...

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Finance

I need the solution or computation Boyertown Industrial Tools is considering a three-year project to improve its production efficiency. Buying a new machine press for $611,000 is estimated to result in
$193,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $162,000. The press also
requires an initial investment in spare parts inventory of $19,000, along with an additional $2,000 in inventory for each succeeding year of the project. If the tax rate is 35
percent and the discount rate is 12 percent, should the company buy and install the machine press? Why or why not?
Table 9.7 Modified ACRS depreciation allowances
Yes; the NPV is $51,613
Yes; the NPV is $45,607
No; the NPV is -$22,311
No; the NPV is -$52,918
No; the NPV is -$74,945
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