Paperless Distributor is considering a four-year project to improve its production efficiency. Buying a new question generator would cost $385,000. It is expected to result in $145,000 in cost savings, per year, before taxes. This piece of equipment would follow the MACRS five-year class depreciation method. Its salvage value at the end of the project is estimated at $45,000. The question generator also requires an immediate investment in spare parts inventory of $20,000. It will require an additional $3,100 in inventory in each succeeding year of the project. The company's tax rate is 22 percent. The appropriate discount rate is 9 percent. Refer to Table 10.7.

Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Should the company buy and install the equipment?