7- Chapman Machine Shop is considering a 4-year project to improve its production efficiency Buying a new machine press for $576,000 is estimated to result in $192,000 in annual pretax cost savings. The press falls in the MACRS 5-year class, and it will have a salvage value at the end of the project of $84,000. The press also requires an initial investment in spare parts inventory of $24,000, along with an additional $3,600 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 35% and its discount rate is 11%. Should the firm buy and install the machine press? MACRS TABLE-5 YEARS MACRS Percentage Year 20.00% 32.00% 2 19.20% 33 11.52% 11.52% 5 5.76% 6