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Calculating initiat investment Vastine Medical, lac, is considenng replacing its existing computer systern, whych was purchased 3 yearu ago at a cost of $335,000. The

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Calculating initiat investment Vastine Medical, lac, is considenng replacing its existing computer systern, whych was purchased 3 yearu ago at a cost of \$335,000. The syterm can be iold today for $200.000. th is being deprocialed using MACR8 and a 5 year recovery period (see the table ). A new compuler wytlem will cost \$498.000 lo purchase and instail. Replacernent af the compuler system would not invotve any change in net working captal. Assume a 40s tak rate on ordinacy incorne and capital gains. a. Caloulate the book value of the exitting computer system b. Calculate the afler-tax proceeds of its asle for $200.000. c. Calovlate the initial investreent associated with the replacement project a. The remaing book value is s (Round to the nearest dollac) Data table (Click on the icon located on the top-right corner 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 Inese percentages nave deen rouncea to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreclation using the half-year convention

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