= Homework: Homework Set 4 Question 12, P11-8 (simi... Part 1 of 3 HW Score: 19.17%, 9.58 of 50 points O Points: 0 of 2 Save Calculating initial investment Vestine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago st 9 cost of $317,000. The system can be sold tocay for $203,000. It is being deprecated using MACRS and a 5-year recovery period (see the table 1). A new computer system will cost $493,000 to purchase and instal. Replacement of the computer system would not involve any charge in net working capital. Assume a 10% tax rate an ordinary income and capital gains. a. Calculate the bank walue of the existing computer system. b. Calculate the aller-lax proceeds of il sale for $203.000. C. Calculate the initial investment 9880dated with the replacement project. Data table a. The remaining book value is $. (Round to the nearest dallar) D 10 years Click on the loon located on the top-right comer of the data table below In order to copy its contents into a snradshant) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 7 years 33% % 2074 14% 10% 2 45% 32% 18% 3 15% 194% 185 14% 4 7% 1292 125% 12% 5 1292 69 8 599 9% 8% 7 9% 7% 8 4% 6% 6% 10 6% 11 1% Tells 100% 100% 100% 100% 'These parcentages have been rounded to the nearest whole parcant to simplity calculations while retaining realism. To calculate the actual depreciation for tre purposes, be sure tasaply the actual urrounded percentages or directly apply double-declining balance (200%) depreciation using the hall-year convention Print Done