HW (2 attempts) Part 1 of 3 a. The remaining book value is $ www O- Calculating initial cash flow Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 3 years ago at a cost of $324,000. The system can be sold today for $202,000. It is being depreciated using MACRS and a 5-year recovery period (see the table). A new computer system will cost $501,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 21% 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 $202,000. c. Calculate the initial cash flow associated with the replacement project. (Round to the nearest dollar.) Points: 0 of Save de $5 WO a. b. C. P Data table (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 Recovery year 1 2 3 8 9 10 11 Totals 3 years 33% 45% 15% 7% Percentage by recovery year 5 years 20% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplify calcu retaining realism. To calculate the actual depreciation for tax purposes, be sure to app itonealak