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 $$139,000.$ The firm has a chance to sell its $3-$year$-$old roaster for $$35,900.$ The existing roaster originally cost $$60,700$ 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$,-$$$20,600$