Aproposed cost-saving device has an installed cost of $835,000. 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 $95,000, the marginal tax rate is 25 percent, and the project discount rate is 11 percent. the device has an estimated year 5 salvage value of $145,000. what level of pretax cost savings do we require for this project to be profitable? macrs schedule (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

The level of pretax cost savings we require for this project to be profitable is $203272.65

Explanation:

investment in fixed assets + investment in NWC = pretax cost savings*(1-t)*PVIFA(R%,n) + PV of dep tax shield + PV of salvage  + PC of NWC

let a be the pretax cosy savings, then:

835000 + 95000 = a*(1-0.25)*3.69589702 + 170786.28 + 64537.83 + 56377.88

930000 = 2.771922765*a + 291701.99

2.771922765*a = 638298.01

a = $230272.65

Therefore, The level of pretax cost savings we require for this project to be profitable is $203272.65.

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

answer; (c) communism and socialism;