Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $310,000. The system can be sold today for $181,000. It is being depreciated using MACRS and a 5-year recovery period (see the table). A new computer system will cost $514,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 30% tax rate on ordinary income and capital gains. a. Calculate the after-tax proceeds of its sale for $181,000. b. Calculate the initial investment associated with the replacement project