Calculating initial investment Vastine Medical, Inc., is consideri replacing its existing computer system, which was purchased $2$ years ago at a cost of $$325,000.$ The system can be sold today for $$200,000.$ It is being depreciated using MACRS and a $5-$year recovery period $($see Table $4\mathrm{.}2,$ page $120.)$ A new computer system will cost $$500,000$ to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a $21\%$ tax rate.Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased $2$ years ago at a cost of $$325,000.$ The system can be sold today for $$200,000.$ It is being depreciated using MACRS and a $5-$year recovery period A new computer system will cost $$500,000$ to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a $21\%$ tax rate.