Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $332,000. The system can be sold today for $195,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). 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 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 $195,000. c. Calculate the initial investment associated with the replacement project. a. The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here p. 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