A proposed cost-saving device has an installed cost of $700000 it is in Class 8 (CCA rate =20% ) for CCA purposes, it will actuaily function for five years, at which time it will have no value. There are no working capital consequences from the investment, and the tax rate is 35% a What must the pre lax cost savings be for us to fovour the investment? We require an 10% return (Hint. This one is a variation on the problem of setting a bid price) (Do not round your intermediote colculotions. Round the final answer to 2 decimal places. Omit $ sign in your response.) Cost savings s b Suppose the device will be worth $98,000 in salvage (before taxes). How does this change your answer? (Do not round your intermediote calculations. Round the final answer to 2 decimal ploces. Omit 5 sign in your resporise.) Cost savings s