Calculating initial cash flow Vastine Medical, Inc., is considering Data table

ispreadsheet.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

:irst Four Property Classes

These percentages have been rounded to the nearest whole percent to simplify calculations whil

etaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actue

inrounded percentages or directly apply double$-$declining balance $(200\%)$ depreciation using

he half$-$year convention.

replacing its existing computer system, which was purchased $2$ years ago

at a cost of $$331,000.$ The system can be sold today for $$191,000.$ It is

being depreciated using MACRS and a $5-$year recovery period $($see the

table $).$ A new computer system will cost $$498,000$ to purchase and

install. Replacement of the computer system would not involve any change

in net working capital. Assume a $21\%$ tax rate on ordinary income and

capital gains.

a$.$ Calculate the book value of the existing computer system.

b$.$ Calculate the after$-$tax proceeds of its sale for $$191,000.$

c$.$ Calculate the initial cash flow associated with the replacement project.

a$.$ The remaining book value is $$.($Round to the nearest dollar.$)$