2. A year ago, Bean Co. bought small-batch coffee roasters for $3.3m which will yield $600,000 in EBITDA per year. They had an 11-year economic life and their market price is now $1.5m. New roasters are available costing $4.5m and with a 10-year economic life. They would yield $1.2m in EBITDA per year. Old and new roasters have no salvage value at the end of their life, and need the same net working capital. Bean Co uses straight-line depreciation for its assets (i.e. depreciation is constant over the asset's life), its tax rate is 45%, and its cost of capital is 10%. I What is the old roasters' book value? b. What would be the after-tax proceeds from selling them? Should Bean Co. replace its year-old roasters with new ones? a