A proposed cost-saving device has an installed cost of $710,000. 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 $53,000, the marginal tax rate is 35 percent, and the project discount rate is 9 percent. The device has an estimated year 5 salvage value of $78,000. What level of pretax cost savings do we require for this project to be profitable? Refer to the table.

What is the pre-tax cost savings?

Property Class Year Three-Year Five-Year Seven-Year A proposed cost-saving device has an installed cost of $710,000. 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 $53,000, the marginal tax rate is 35 percent, and the project discount rate is 9 percent. The device has an estimated year 5 salvage value of $78,000. What level of pretax cost savings do we require for this project to be profitable? Refer to the table.What is the pre-tax cost savings