Question: help!! 4. Masters Machine Shop is considering a four-year project to improve its production efficiency Buying a new machine press for $1,008,000 is estimated to

 help!! 4. Masters Machine Shop is considering a four-year project to

help!!

4. Masters Machine Shop is considering a four-year project to improve its production efficiency Buying a new machine press for $1,008,000 is estimated to result in $336,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $147,000. The press also requires an initial investment in spare parts inventory of $42,000, along with an additional S6,300 in inventory for each succeeding year of the project Property Class Year Three-Year Five-Year Seven-Year 1 33.33% 20.00% 14.29% 44.45 32.00 24.49 14.81 19.20 17.49 7.41 11.52 12.49 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46 UN If the shop's tax rate is 22 percent and its discount rate is 12 percent, what is the NPV for this project? a) $9,534.64 b) $12,654.89 c) $-99,698.29 d) $10,011.37 e) $9,057.91

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