Calculating Required Savings (L05) A proposed costusaving device has an installed cost of $865,000. The device will be used in a six-year project, but is classied as manufacturing and processing equipment for tax purposes. The required initial not working capital investment is $58,000, the marginal tax rate is 36 percent, and the project discount rate is 13.5 percent. The device has an estimated Year 6 salvage value of $138,000. What level of pre-tax cost savings do we require for this project to be protable? The CCA rate is 20 percent