In: Finance
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $816,000 is estimated to result in $272,000 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 $119,000. The press also requires an initial investment in spare parts inventory of $34,000, along with an additional $5,100 in inventory for each succeeding year of the project. |
Required : |
If the shop's tax rate is 30 percent and its discount rate is 20 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
rev: 09_18_2012
$-147,501.23
$-144,136.65
$-215,451.39
$-154,876.30
$-140,126.17