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Calculating initial investment DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer - controlled automatic -

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
$131,000. The firm has a chance to sell its 3-year-old roaster for $35,500. The existing roaster originally cost $59,700 and was being depreciated straight-line over 7 years. DuPree pays taxes at a
rate of 40%.
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
d. Calculate the initial investment associated with the proposed new roaster.
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.)
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