Calculating initial investment DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The in $34,500. The existing roaster originally cost $59,600 and was being depreciated using MACRS and a 7-year recove 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 Accruals - $20.800 Inventory + 49,500 Accounts payable + 39,400 Accounts receivable +70,300 -Cash a. The remaining book value of the existing roaster is $ (Round to the nearest dollar.) b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar) c. The change in net working capital will be $ (Round to the nearest dollar.) d. The initial investment associated with the proposed new roaster will be $ (Round to the nearest dollar.) ties. The installed cost of a proposed computer-controlled automatic-feed roaster will be 5127,000. The firm has a chance to sell its 3-year-old roaster for ar recovery period (see the table B) Dupree is subject to a 40% tax rate. ar) (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 1 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% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% These percentages have 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 9% Print Done 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 Accruals - $20,800 Inventory + 49,500 Accounts payable +39.400 Accounts receivable + 70,300 Cash 0 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 be $ (Round to the nearest dollar.) c. The change in net working capital will be [ (Round to the nearest dollar) d. The initial investment associated with the proposed new roaster will be $ (Round to the nearest dollar.)