What is the npv for the project for purple haze machine shop

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Problem 1: Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $532,626 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 $85,800. The OCFs of the project during the 4 years are $171,500, $196,311, $173,879 and $166,215, respectively. The press also requires an initial investment in spare parts inventory of $27,182, along with an additional $3,544 in inventory for each succeeding year of the project. The shop's discount rate is 9 percent. What is the NPV for this project?

Reference no: EM132743052

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