Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $943,688 is estimated to result in $239.069 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $101.142. The press also requires an initial investment in spare parts inventory of $57,592, along with an additional $13,989 in inventory for each succeeding year of the project. If the shop's tax rate is 0.36 and its discount rate is 0.15, what is the total cash flow in year 4? (Do not round your intermediate calculations.) (Make sure you enter the number with the appropriate +/- sign)

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $943,688 is estimated to result in $239.069 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $101.142. The press also requires an initial investment in spare parts inventory of $57,592, along with an additional $13,989 in inventory for each succeeding year of the project. If the shop's tax rate is 0.36 and its discount rate is 0.15, what is the total cash flow in year 4? (Do not round your intermediate calculations.) (Make sure you enter the number with the appropriate +/- sign)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 13P

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