How do find and calculate the npv of the project

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Blue line Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $540,000 is estimated to result in $225,000 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 $91,000. The press also requires an initial investment in spare parts inventory of $27,000, along with an additional $3,2000 in inventory for each succeeding year of the project. The shop's tax rate is 30% and the project's required return is 8%.

Problem 1: Find and Calculate the NPV of this project (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Reference no: EM132746271

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