Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $330,000. The system can be sold today for $191.000. It is being depreciated using MACRS and a 5-year recovery period (see the table ) A new computer system will cost $491,000 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 $191,000 c. Calculate the initial investment associated with the replacement project. Data Table a. The remaining book value is $. (Round to the nearest dollar) (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 6% 9 10 6% Enter your answer in the answer box and then click Check Answer 11 100% Totals 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplity calculations while be sure to apply the actual 12