Ception Nonmal Note Level 2 Heading 1 (Use the following information to answer the next three questions.) Massey Machine Shop is considering a four.xcar project to improve its production efficiency. Buying a new machine press for $730,000 is estimated to result in $220,000 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 $89,000. The press also requires an initial investment in spare parts inventory of $26,000, along with an additional $3,000 in inventory for each succeeding year of the project. The shop's tax rate is 40 percent and its discount rate is 9 percent. Property Class Five-Year 20.00% Three-Year 33.33% 44.45 14.81 7.41 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Year 2 3 19.20 11.52 11.52 5.76 5 6 8 What is the operating cash inflows at t-1? What is the total cash inflows (operating cash flows plus terminal cash flows) at t-42 Compute the IRR of the project. Should the company buy the press? MacBook Air