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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 computercontrolled automaticfeed roaster will be
$ The firm has a chance to sell its yearold roaster for $ The existing roaster originally cost $ and was being depreciated straightline over years. DuPree pays taxes at a
rate of
a What is the book value of the existing roaster?
b Calculate the aftertax 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 aftertax 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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