Caradoc Machine Shop is considering a four$-$year project to improve its production efficiency. Buying a new machine press for $$410,000$ is estimated to result in $$150,000$ in annual pre$-$tax cost savings. The press falls into Class $8$ for CCA purposes $($CCA rate of $20\%$ per year$),$ and it will have a salvage value at the end of the project of $$55,000.$ The press also requires an initial investment in spare parts inventory of $$20,000,$ along with an additional $$3,100$ in inventory for each succeeding year of the project. If the shop$$s tax rate is $35\%$ and its discount rate is $9\%.$

Calculate the NPV of this project. $($Do not round your intermediate calculations. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

NPV $ $786705\mathrm{.}04$ Numeric ResponseEdit Unavailable. $786705\mathrm{.}04$ incorrect.

Should the company buy and install the machine press?

multiple choice

Yes Correct

No