Examine what is the npv for the project

Reference no: EM132063635

Question: Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $530379 is estimated to result in some amount of annual pretax cost savings. The press will have an aftertax salvage value at the end of the project of $87487. The OCFs of the project during the 4 years are $172664, $191485, $175019 and $168801, respectively. The press also requires an initial investment in spare parts inventory of $21068, along with an additional $1620 in inventory for each succeeding year of the project. The shop's discount rate is 8 percent. What is the NPV for this project? (Round your final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Reference no: EM132063635

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