Quick Machine Shop is considering a four$-$year project to improve

its production efficiency. Buying a new machine for $$390,000$ is

estimated to result in $$135,000$ in annual pretax cost savings. The

press falls in the MACRS five$-$year class, and it will have a pretax

salvage value at the end of the project of $$198,000.$ The MACRS

rates are $\mathrm{.}2,\mathrm{.}32,\mathrm{.}192,\mathrm{.}1152,\mathrm{.}1152,$ and $\mathrm{.}0576$ for Years $1$ to $6,$

respectively. Ignore bonus depreciation. The press also requires an

initial investment in inventory of $$8,000,$ along with an additional

$$1,500$ in inventory for each succeeding year of the project. The

inventory will return to its original level when the project ends.

The shop's tax rate is $21$ percent and its discount rate is $16$

percent. Should the firm buy and install the machine? What is the

NPV$?$