A proposed cost-saving device has an installed cost of $790,000. The device will be used in...

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A proposed cost-saving device has an installed cost of $790,000.The device will be used in a five-year project but is classified asthree-year MACRS property for tax purposes. The required initialnet working capital investment is $77,000, the marginal tax rate is21 percent, and the project discount rate is 10 percent. The devicehas an estimated Year 5 salvage value of $118,000. What level ofpretax cost savings do we require for this project to beprofitable? MACRS schedule (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)

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A proposed cost-saving device has an installed cost of $790,000.The device will be used in a five-year project but is classified asthree-year MACRS property for tax purposes. The required initialnet working capital investment is $77,000, the marginal tax rate is21 percent, and the project discount rate is 10 percent. The devicehas an estimated Year 5 salvage value of $118,000. What level ofpretax cost savings do we require for this project to beprofitable? MACRS schedule (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)