Hello! I need help with this question. Its attached, alongside the schedule. Thanks so much! Tanaka Machine Shop is considering a 4-year project to improve its productionefficiency. Buying a new machine press for $395,000 is estimated to result in $151,000 inannual pretax cost savings. The press falls in the 5-year MACRS class, and it will have asalvage value at the end of the project of $51,000. The press also requires an initialinvestment in spare parts inventory of $22,000, along with an additional $3,200 ininventory for each succeeding year of the project. The shop's tax rate is 22 percent andits discount rate is 9 percent. (MACRS schedule) Calculate the NPV of this project. (Donot round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)NPVShould the company buy and install the machine press?YesO No Table 6.3 Depreciation under Modified Accelerated Cost Recovery System (MACRS)Year 3 Years1.33332.44453.14814.0741567891011121314151617181920215 Years2000.3200.1920.1152.1152.0576Recovery Period Class7 Years10 Years.1429.2449.1749.1249.0893.0892.0893.0446. 1000.1800.1440.1152.0922.0737.0655.0655.0656.0655.032815 Years.0500.0950.0855.0770.0693.0623.0590.0590.0591.0590.0591.0590.0591.0590.0591.029520 Years.03750.07219.06677.06177.05713.05285.04888.0452204462.04461.04462.04461.04462.0446104462.04461.04462.04461.04462.04461.02231Depreciation is expressed as a percentage of the asset's initial cost. These schedules are based on IRS Publication 946, entitled How to Depreciate Property. Details of depreciation are presented later in thechapter. Five-year depreciation actually carries over six years because the IRS assumes the purchase is made midyear.

Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Tanaka Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $395,000 is estimated to result in $151,000 in annual pretax cost savings. The press falls in the 5-year MACRS class, and it will have a salvage value at the end of the project of $51,000. The press also requires an initial nvestment in spare parts inventory of $22,000, along with an additional $3,200 in nventory for each succeeding year of the project. The shop's tax rate is 22 percent and ts discount rate is 9 percent. (MACRS schedule) Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)