Business, 29.11.2021 07:50 Tajaachambliss7

A proposed cost-saving device has an installed cost of $735,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes (MACRS schedule). The required initial net working capital investment is $55,000, the tax rate is 22 percent, and the project discount rate is 9 percent. The device has an estimated Year 5 salvage value of $85,000. What level of pretax cost savings do we require for this project to be profitable?

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A proposed cost-saving device has an installed cost of $735,000. The device will be used in a five-y...

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