Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,152,000 is estimated to result in $384,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $168,000. The press also requires an initial investment in spare parts inventory of $48,000, along with an additional $7,200 in inventory for each succeeding year of the project. If the shop's tax rate is 22 percent and its discount rate is 12 percent, what is the NPV for this project?

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year. if the tax rate is 35 percent, what is the annual ocf for the project?