What level of pretax cost savings do we require

Assignment Help Finance Basics

Reference no: EM13272546

A proposed cost-saving device has an installed cost of $640,000. 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 $55,000, the marginal tax rate is 35 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $60,000. What level of pretax cost savings do we require for this project to be profitable?

Reference no: EM13272546

Questions Cloud

Determine the acceleration of the sled : Jone pulls her brother on a sled over a horizontal surface with force of 80N. The force is at an angle of 25 degree, determine the acceleration of the sled

What is the yield on 2-year treasury securities : The real risk-free rate is 3.25%. Inflation is expected to be 1.75% this year and 5% during the next 2 years. Assume that the maturity risk premium is zero.

How much work is done by the electric field due to the sheet : (a) How much work is done by the electric field due to the sheet if a particle of charge q = +1.60 × 10-19 C is moved from the sheet to a point P at distance d = 3.38 cm from the sheet b) If the electric potential V is defined to be zero on the she..

What steps do vikki and tim need to take to prepare : What steps do Vikki and Tim need to take to prepare for retirement?

What level of pretax cost savings do we require : The device has an estimated Year 5 salvage value of $60,000. What level of pretax cost savings do we require for this project to be profitable?

What is initial speed of electron if it stop just at surface : Two charged, parallel, flat conducting surfaces are spaced d = 2.10 cm apart and produce a potential difference ΔV = 500 V between them. An electron is projected from one surface directly toward the second.

Building online communities and social networks : Identify and describe three of the most significant best practices for building online communities and social networks

Define if the response is periodic with period 4 seconds : 1. If x(t) is periodic with period 2.1 seconds and y(t) is periodic with period 2.4 seconds, is x(t)+y(t) periodic Why or why not 2. If x[n] is periodic with period 15 seconds and y[n] is periodic with period 10 seconds, is x[n]+y[n] periodic

Nomination process will produce a qualified nominee : Which groups of voters are typically most and least likely to vote, and why and how can the party be sure that the nomination process will produce a qualified nominee?

User Account

All Pages