Jasper Company Ltd. has a payback goal of three years on new equipment acquisitions. Jasper is evaluating new equipment that costs $450,000, will have a CCA rate of 20%, an estimated useful life of 8 years, and a zero terminal disposal price. The company's marginal tax rate is 40%.
Required:
Calculate the amount of after-tax savings in annual cash operating costs that must be generated by the new equipment in order to meet the company's payback goal.

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The Answer of Jasper Company Ltd. has a payback goal of three years on new equipment acquisitions. Jasper is evaluating new equipment that costs $450,000, will have a CCA rate of 20%, an estimated useful life of 8 years, and a zero terminal disposal price. The company's marginal tax rate is 40%.
Required:
Calculate the amount of after-tax savings in annual cash operating costs that must be generated by the new equipment in order to meet the company's payback goal.