Calculating initial cash flow DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer$-$controlled automatic$-$feed roaster will be $$126,000.$ The firm has a chance to sell its $5-$year$-$old roaster for $$34,000.$ The existing roaster originally cost $$59,300$ and was being depreciated using MACRS and a $7-$year recovery period $($see the table $).$ DuPree is subject to a $21\%$ 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 following figures:

Anticipated Changes in Current Assets and Current Liabilities

$\backslash$table$[[$Accruals$,-$$$19,100$