Cash - 0

Notes Payable - 14,400

Calculating initial investment Dupree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be $135,000. The firm has a chance to sell its 4-year-old roaster for $35,400. The existing roaster originally cost $60,800 and was being depreciated using MACRS and a 7-year recovery period (see the table ). DuPree is subject to a 40% tax rate. a. What is the book value of the existing roaster? b. Calculate the after-tax proceeds of the sale of the existing roaster c. Calculate the change in net working capital using the following figures: Data Table Anticipated Changes in Current Assets and Current Liabilities Accruals - $19.200 Inventory +50.800 Accounts payable 40,000 Accounts receivable +70,900 a. The remaining book value of the existing roaster is 1 (Click on the icon here in order to copy the contents of the data table below 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 33% 20% 14% 45% 32% 25% 15% 19% 18% 12% 124 9% 5% 10 years 10% 18% 1496 12% 9% 75 DOWN 12% 8% 7% 6% 64 nter your answer in the answer box and then click Chel 100% Totals 10046 100% These percentages have been founded in the nearethen 4% 100%