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Calculating initial investment DuProe Coffon Roasters, Inc, wishes to expand and modernize its facilales. The instaled cost of a proposed compuser-controlied automatio-feed roaster will be

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Calculating initial investment DuProe Coffon Roasters, Inc, wishes to expand and modernize its facilales. The instaled cost of a proposed compuser-controlied automatio-feed roaster will be $125,000. The fem has a chance to sell as 5 -year-old rooster for $35,800. The existing roaster onginally cost $59,100 and was being deprecisiod using MACRS and a 7 -yeac recovery period (see the table I Dupree is subject to a 40% tax rate. a. What is the book valie of the existing roaster? b. Calculate the affer-tax proceeds of the sale of the evisting roaster. c. Calculate the change in nof working capita using the following fgures. a. The remaining book valoe of the exiting roaster is 1 (Round to the neacest dollar.) b. The aftertax proceeds of the sale of the existing roaster wall be: (Round to the nearest doliac) c. The change in net working captai wil be 9 (Round to the nearest dollar) d. The initial investment associated with the proposed new roaster wil bef (Round to the nearest dollar.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Irese percentages nave been rounced 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

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