Motion Metrics is considering a four-year project to improve its production efficiency. Buying a new production equipment for $421,000 is estimated to result in $161,000 in annual pre-tax cost savings. The equipment 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 $56,100. The project also requires an initial investment in spare parts inventory of $31,000, along with an additional $4,200 in inventory for each succeeding year of the project. If the firm'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 $ Should the company buy and install the new equipment? O Yes O No

Motion Metrics is considering a four-year project to improve its production efficlency. Buying a new production equipment for $421,000 is estimated to result in $161,000 in annual pre-tax cost savings. The equipment 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 $56,100. The project also requires an initial investment in spare parts inventory of $31,000, along with an additional $4,200 in inventory for each succeeding year of the project. If the firm'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 Should the company buy and install the new equipment? Motion Metrics is considering a four-year project to improve its production efficiency. Buying a new production equipment for $421,000 is estimated to result in $161,000 in annual pre tax cost savings. The equipment 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 $56,100. The project also requires an initial imvestment in spare parts inventory of $31,000, along with an additional $4,200 in inventory for each succeeding year of the project. It the firmi's tax rate is 35% and its discount rate is 9%. Calculate the NPV of this project. (Do not round your intermediote calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ Should the company buy and install the new equipment