done using excel

Calculating Require d Savings (10 points) 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. 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 before tax of $85,000. What level of pretax cost savings do we require for this project to be value-creating? The 3-year MACRS schedule is 33.33%, 44.45%, 14.81%, 7.41%