Chapman Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $650,000 is estimated to result in $220,000 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 $95,000. The press also requires an initial investment in spare parts inventory of $30,000. The inventory will return to its original level when the project ends. The shop's tax rate is 35 percent and its discount rate is 11 percent. Calculate the NPV for this project. MACRS Table- 5 Years YEAR MACRS Percentage 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%