Calculating Initial investment Vesti Medical, Inc. is considering religionising computer system, which was purchased 2 years ago at a cost of $22.000The system can be sold today for $206.000. being deprecated using MACRS and a buyer recovery period the table ) A new computer system will cost $60,000 to purchase and instal. Replacement of the computer wylem would not involve any change in networking Assume 40% tax rate on ordinary income and capital gains a Caleate the book value of the exiving computer system b. Calculate the hertax proceeds of sale for $200.000 cette intalnestment associated with the replacement project 0 Data Table Click on the con here in order to the contents of the data ordent) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery ye 3 years 5 years 7 years 10 years 33 2013 145 10% 2 45% 12% 25% 16% 19% 18% 1% 12% 129 126 123 9 64 64 10 6 11 44 To 100% 100% 3304 100 The percentage borded to the whole parents while angrebam to calculate the depreciation for purposes. beurope urrounded percentages directly apply double decling balance (20 g convention Calculating initial investment Vastine Medicat, Inc. is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $322,000 The system can be sold today for $205,000. It is being depreciated using MACRS and a 5-year recovery penod (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 a. Calculate the book value of the existing computer system b. Calculate the after tax proceeds of its sale for $205,000 c. Calculate the initial investment associated with the replacement project 2. The remarung book value is $(Round to the nearest dolar) 01 0 nei WE Enter your answer in the answer box and then click Check