$14$

Problem $9-23$ Cost$-$Cutting Proposals LO $2]$

$5$

points

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Tanaka Machine Shop is considering a four$-$year project to improve its production efficiency. Buying a new machine press for $$421,000$ is estimated to result in $$157,000$ in annual pretax cost savings. The press falls in the MACRS five$-$year class $($MACRS schedule$)$ and it will have a salvage value at the end of the project of $$58,000.$ The press also requires an initial investment in spare parts inventory of $$16,300,$ along with an additional $$3,300$ in inventory for each succeeding year of the project. The shop's tax rate is $23$ percent and its discount rate is $10$ percent. Calculate the project's NPV$.$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

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