Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased $2$ years ago at a cost of $$323,000.$ The system can be sold tod. for $$197,000.$ It is being depreciated using MACRS and a $5-$year recovery period $($see the table $).$ A new computer system will cost $$509,000$ 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 $$197,000.$

c$.$ Calculate the initial investment associated with the replacement project.

a$.$ The remaining book value is $ $($Round to the nearest dollar.$)$