Question: provide a step by step excel solutions 3. Calculating Required Savings A proposed cost-saving device has an installed cost of $905,000. The device will be

provide a step by step excel solutions 3. Calculating Required Savings

provide a step by step excel solutions

3. Calculating Required Savings A proposed cost-saving device has an installed cost of $905,000. 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 $65,000, the tax rate is 22 percent, and the project discount rate is 9 percent. The device has an estimated Year 5 salvage value of $125,000. What level of pretax cost savings do we require for this project to be profitable

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