A proposed cost-saving device has an installed cost of $653,000. The device will be used in a five-year project but is classified as three-year MACRS (MACRS Table) property for tax purposes. The required initial net working capital investment is $48,000, the marginal tax rate is 40 percent, and the project discount rate is 14 percent. The device has an estimated Year 5 salvage value of $73,000.

Required:

What is the depreciation each year of the project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Depreciation
Year 1	$
Year 2
Year 3
Year 4

What is the aftertax salvage value of the equipment? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Aftertax salvage value

$

What level of pretax cost savings do we require for this project to be profitable? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Pretax savings

$