Tanaka Machine Shop is considering a four$-$year project to improve its production efficiency. Buying a new machine press for $$510,000$ is estimated to result in $$210,000$ 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 $$86,000.$ Refer to Table $8\mathrm{.}3.$ The press also requires an initial investment in spare parts inventory of $$24,000,$ along with an additional $$2,900$ in inventory for each succeeding year of the project. The shop's tax rate is $24$ percent and the project's required return is $8$ percent. Calculate the NPV of this project. Table $8\mathrm{.}3$ Depreciation under Modified Accelerated Cost Recovery System $($MACRS$)$

$\backslash$table$[[$Year$,3$ Years,$5$ Years,$\backslash$table$[[$Recovery$],[7$ Years$]],\backslash$table$[[$Period Class$],[10$ Years$]],15$ Years,$20$ Years$],[1,\mathrm{.}3333,\mathrm{.}2000,\mathrm{.}1429,\mathrm{.}1000,\mathrm{.}0500,\mathrm{.}03750],[2,\mathrm{.}4445,\mathrm{.}3200,\mathrm{.}2449,\mathrm{.}1800,\mathrm{.}0950,\mathrm{.}07219],[3,\mathrm{.}1481,\mathrm{.}1920,\mathrm{.}1749,\mathrm{.}1440,\mathrm{.}0855,\mathrm{.}06677],[4,\mathrm{.}0741,\mathrm{.}1152,\mathrm{.}1249,\mathrm{.}1152,\mathrm{.}0770,\mathrm{.}06177],[5,,\mathrm{.}1152,\mathrm{.}0893,\mathrm{.}0922,\mathrm{.}0693,\mathrm{.}05713],[6,,\mathrm{.}0576,\mathrm{.}0892,\mathrm{.}0737,\mathrm{.}0623,\mathrm{.}05285],[7,,,\mathrm{.}0893,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04888],[8,,,\mathrm{.}0446,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04522],[9,,,,\mathrm{.}0656,\mathrm{.}0591,\mathrm{.}04462],[10,,,,\mathrm{.}0655,\mathrm{.}0590,\mathrm{.}04461],[11,,,,\mathrm{.}0328,\mathrm{.}0591,\mathrm{.}04462],[12,,,,,\mathrm{.}0590,\mathrm{.}04461],[13,,,,,\mathrm{.}0591,\mathrm{.}04462],[14,,,,,\mathrm{.}0590,\mathrm{.}04461],[15,,,,,\mathrm{.}0591,\mathrm{.}04462],[16,,,,,\mathrm{.}0295,\mathrm{.}04461],[17,,,,,,\mathrm{.}04462],[18,,,,,,\mathrm{.}04461],[19,,,,,,\mathrm{.}04462],[20,,,,,,\mathrm{.}04461],[21,,,,,,\mathrm{.}02231]]$

Depreciation is expressed as a percentage of the asset's initial cost. These schedules are based on IRS Publication $946,$ entitled How to Depreciate Property. Details of depreciation are presented later in the chapter. Fiveyear depreciation actually carries over six years because the IRS assumes the purchase is made midyear.

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

NPV