Calculating initial investment DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be $120,000. The firm has a chance to sell its 4 -year-old roaster for $35,000. The existing roaster originally cost $59,700 and was being depreciated using MACRS and a 7-year recovery period (see the table 1. DuPree is subject to a 40% 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 investment associated with the proposed new roaster