CSM Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $545,000 is estimated to result in $197,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a market value at the end of the project of $70,000. The press also requires an initial investment in spare parts inventory of $21,000, along with an additional $3,000 in inventory for each succeeding year of the project. If the shop's tax rate is 34% and its discount rate is 11%, fill in the below blanks.
Book value of the equipment at the end of the project is_______.
Operating cash flows Project cash flows
The NPV of the project is_______.