Simmons Company is considering the purchase price of a new floor machine.

The purchase price of the equipment is $420,000 and it is expected to have a useful life of 7 years with no salvage value.

The company uses straight line depreciation and pays income taxes at a rate of 25%.

If the company requires that all new equipment investments pay for themselves within 3 years, how much annual cash operating savings must the floor machine generate, if it is to be bought.

Please show the steps in detail. I really want to learn the entire process here.

Thank you!