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Calculating initial investment Vastine Medical, Inc., is considering replacing is existing computer 5y slem, which was purchased 3 yents apo at o coot of 3327,000

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Calculating initial investment Vastine Medical, Inc., is considering replacing is existing computer 5y slem, which was purchased 3 yents apo at o coot of 3327,000 . The system can be sold today for $209,000. It is being doprecialed using MACRS and a 5 -year recovery period (see the table 1 Anew compulor syatem wi cosi) $494,000 to purchase and install. Replacement of the computer system would not involve any change in not working capital. Assume a AQ\$s tax tate on ordinary. income and capital gains a. Calculate the book value of the oxisting computer systeen b. Calculate the after-tax proceede of its fale for $209,000. c. Calculate the initial invostrnent absociated with the roplacenvent projoct. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes

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