Calculating initial investment Vastine Medical, Inc. is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $321,000. The system can be sold today for $201,000. It is being depreciated using MACRS and a 5 -year recovery period (see the table. A new computer system will cost $492,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital Assume a 40% tax rate on ordinary income and capital gains a. Calculate the book value of the existing computer system. b. Calculate the after-tax proceeds of its sale for $201,000 c. Calculate the initial investment associated with the replacement project. a. The remaining book value is $ (Round to the nearest dollar.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes