What level of pretax cost savings do we require for this


A proposed cost-saving device has an installed cost of $657,000. The device will be used in a five-year project but is classified as three-year MACRS (MACRS Table) property for tax purposes. The required initial net working capital investment is $50,000, the marginal tax rate is 40 percent, and the project discount rate is 14 percent. The device has an estimated Year 5 salvage value of $75,000. What is the depreciation each year of the project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Depreciation Year 1 $ Year 2 Year 3 Year 4 What is the aftertax salvage value of the equipment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Aftertax salvage value $ What level of pretax cost savings do we require for this project to be profitable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pretax savings $

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Financial Management: What level of pretax cost savings do we require for this
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