6.)

A proposed cost-saving device has an installed cost of $805,000. 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 $83,000, the marginal tax rate is 24 percent, and the project discount rate is 9 percent. The device has an estimated Year 5 salvage value of $127,000. What level of pretax cost savings do we require for this project to be profitable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) \begin{tabular}{|cccc|} \hline \multicolumn{3}{|c|}{ Property Class } \\ \hline Year & Three-Year & Five-Year & Seven-Year \\ \hline 1 & 33.33% & 20.00% & 14.29% \\ 2 & 44.45 & 32.00 & 24.49 \\ 3 & 14.81 & 19.20 & 17.49 \\ 4 & 7.41 & 11.52 & 12.49 \\ 5 & & 11.52 & 8.93 \\ 6 & & 5.76 & 8.92 \\ 7 & & 8.93 \\ 8 & & 4.46 \\ \hline \end{tabular}