A proposed cost-saving device has an installed cost of $450,000. 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 $30,000, the marginal tax rate is 35 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $75,000. What level of per year pretax cost savings do we require for this project to be profitable?

(Hint: To start, treat the per-year pretax cost savings as an unknown value, and then use the tax-shield approach to compute OCF directly. Solve for the breakeven level of cost savings, such that the NPV=0).