3 P11-14 Calculating initial investment DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled auto- matic-feed roaster will be $130,000. The firm has a chance to sell its 4-year-old roaster for $35,000. The existing roaster originally cost $60,000 and was being de- preciated using MACRS and a 7-year recovery period. (See Table 4.2 on page 166 for the applicable depreciation percentages.) Dupree is subject to a 40% tax rate. a. What is the book value of the existing roaster? b. Calculate the after-tax proceeds of the sale of the existing roaster. c. Calculate the change in net working capital using the figures given in the follow- ing table. Anticipated Changes in Current Assets and Current Liabilities Accruals Inventory Accounts payable Accounts receivable Cash Notes payable --$20,000 + 50,000 + 40,000 +70,000 0 + 15,000 d. Calculate the initial mvestment associated with the proposed new roaster