A proposed cost-saving device has an installed cost of $664,000. The device will be used in...

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A proposed cost-saving device has an installed cost of $664,000.The device will be used in a five-year project but is classified asthree-year MACRS (MACRS Table) property for tax purposes. Therequired initial net working capital investment is $53,500, themarginal tax rate is 34 percent, and the project discount rate is13 percent. The device has an estimated Year 5 salvage value of$78,500.
What is the depreciation each year of the project?
What is the aftertax salvage value of the equipment?
Aftertax salvage value $ What level of pretax cost savings do werequire for this project to be profitable?

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A proposed cost-saving device has an installed cost of $664,000.The device will be used in a five-year project but is classified asthree-year MACRS (MACRS Table) property for tax purposes. Therequired initial net working capital investment is $53,500, themarginal tax rate is 34 percent, and the project discount rate is13 percent. The device has an estimated Year 5 salvage value of$78,500.What is the depreciation each year of the project?What is the aftertax salvage value of the equipment?Aftertax salvage value $ What level of pretax cost savings do werequire for this project to be profitable?