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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

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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 $138,000. The firm has a chance to sell its 5 -year-old roaster for $35,000. The existing roaster originally cost $60,000 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: d. Calculate the initial cash flow associated with the proposed new roaster. a. The remaining book value of the existing roaster is $ (Round to the nearest dollar.) b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar.) c. The change in net working capital will be $ (Round to the nearest dollar.) d. The initial cash flow associated with the proposed new roaster will be $ (Round to the nearest dollar.)

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