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 $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 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 5 (Round to the nearest dollar) b. The after-tax proceeds of the sale of the existing roaster will bes (Round to the nearest dolltar) c. The change in net working capital will be $ (Round to the nearest dollat) d. The initial cash flow associated with the proposed new roaster will bes (Round to the nearest dollar) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Inese percentages nave been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention