Calculating Initial cash flow Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $335,000 The system can be sold today for $204,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ) A new computer system will cost 3496,000 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 3. Calculate the book value of the existing computer system, b. Calculate the after-tax proceeds of its sale for S204,000 c. Calculate the initial cash flow associated with the replacement project. =a. The remaining book value is $ . (Round to the nearest dollar) 1 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 Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% 6% Check