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 $133,000. The firm has a chance to sell its 4-year-old roaster for $34,200. The existing roaster originally cost $60,400 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 net working capital using the following figures: Anticipated Changes in Current Assets and Current Liabilities Accruals - $20,400 Inventory +49,500 Accounts payable + 40,000 Accounts receivable + 69,900 ..... 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.) 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 $133,000. The firm has a chance to sell its 4-year-old roaster for $34,200. The existing roaster originally cost $60,400 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 net working capital using the following figures: Anticipated Changes in Current Assets and Current Liabilities Accruals - $20,400 Inventory +49,500 Accounts payable + 40,000 Accounts receivable + 69,900 ..... 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.)