Warmack machine shop is considering a four-year project to improve its production efficiency. buying a new machine press for $530,000 is estimated to result in $220,000 in annual pretax cost savings. the press falls in the macrs five-year class, and it will have a salvage value at the end of the project of $89,000. the press also requires an initial investment in spare parts inventory of $26,000, along with an additional $3,100 in inventory for each succeeding year of the project. the shop’s tax rate is 35 percent and its discount rate is 9 percent. (macrs schedule)calculate the npv of this project

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.