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 $139,000 The firm has a chance to sell its 4 year old roaster for $34 300 The existing roaster originally cost 560 300 and was being depreciated using MACRS and a 7-year recovery period (see the table 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 not working capital using the following figures Anticipated Changes in Current Assets and Current Liabilities Accruals $19,200 Inventory +49,800 Accounts payable +40,000 Accounts receivable + 69.700 a. The remaining book value of the existing roaster is $(Round to the nearest dollar) 10 years 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 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% 9% 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 Print Done