CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a

| September 28, 2018

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $500,000 is estimated to result in $199,000 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 $62,500. The press also requires an initial investment in spare parts inventory of $22,500, along with an additional $4,500 in inventory for each succeeding year of the project. The shop’s tax rate is 30 percent and its discount rate is 12 percent.Requirement 1:Calculate the NPV. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)refer attachment

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