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 $124,000. The firm has a chance to sell its 5-year-old roaster for $34,500. The existing roaster originally cost $60,800 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: 1 Data Table - X Anticipated Changes in Current Assets and Current Liabilities Accruals - $20,500 Inventory +51,000 Accounts payable + 40,800 Accounts receivable +70,300 a. The remaining book value of the existing roaster is $|| ecovery year 3 years 33% 45% 15% 7% 10 years 10% 18% 14% b. The after-tax proceeds of the sale of the existing roast Percentage by recovery year* 5 years 7 years 20% 14% 32% 25% 19% 12% 12% 9% 9% 18% c. The change in net working capital will be $ 12% (Roun co AWN d. The initial investment associated with the proposed ng 5% 10 Enter your answer in each of the answer boxes. 4% 100% Totals 100% 100% 100%