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

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Geller Machine Shop Is Considering A Four Year Project To Improve Its Production Efficiency Buying A New Machine Press 1 (48.85 KiB) Viewed 45 times

Geller Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $560,000 is estimated to result in $235,000 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 $94,000. The press also requires an initial investment in spare parts inventory of $29,000, along with an additional $3,400 in inventory for each succeeding year of the project. The shop's tax rate is 24 percent and the project's required return is 9 percent. Refer to Table 8.3. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV