Stanley Company Has Obtained the Following Information About a Proposed

Stanley Company has obtained the following information about a proposed project:
Annual cash operating savings (excluding depreciation)
$\begin{array}{ll}\text { for } 5 \text { years (end of year) } & \$ 50,000 \\\text { Depreciation expense per year for tax purposes } & \$ 33,000 \\\text { Estimated salvage value in } 5 \text { years } & \$ 10,000 \\\text { Cost of equipment } & \$ 175,000 \\\text { Required rate of return } & 10 \% \\\text { Income taxrate } & 40 \% \\\text { Estimated useful life (in years) } & 5\\\text { Depreciation method for tax purposes }&\text { Straight-line }\end{array}$
Present value of ordinary annuity of one
$\begin{array} { l } \text { at \( 10 \% \) for 5 periods}& 3.79.8\\ \text {Present value of one at \( 10 \% \) for 5 periods }&0.6209 \\\end{array}$

Required:
A) What is the NPV of the project?
B) Should the project be undertaken?