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(Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) 5 years Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 7 years 1 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 12% 5 12% 9% 6 5% 9% 7 9% 8 4% 9 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% Print Print Done Done 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 $138,000. The firm has a chance to sell its 3-year-old roaster for $34,800. The existing roaster originally cost $59.100 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 Anticipated Changes in Current Assets and Current Liabilities Accruals $19,100 + 50,900 Accounts payable + 39,900 70 m a. The remaining book value of the existing roaster is $(Round to the nearest dollar) Inventory b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar.) c. The change in net working capital will be $ . (Round to the nearest dollar) Enter your answer Pach 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: Anticipated Changes in Current Assets and Current Liabilities Accruals -$19,100 Inventory + 50.900 Accounts payable + 39,900 Accounts receivable + 70,500 Cash 0 Notes payable + 14,500 d. Calculate the initial investment associated with the proposed new roaster. a. The remaining book value of the existing roaster is $. (Round to the nearest dollar) b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar) c. The change in net working capital will be $ (Round to the nearest dollar) MYJHLUNCULA55015 au Current Liabilities Accruals $19,100 Inventory + 50,900 Accounts payable + 39,900 Accounts receivable + 70,500 Cash 0 Notes payable + 14,500 d. Calculate the initial investment associated with the proposed new roaster. b. The after-tax proceeds of the sale of the existing roaster will be $0 (Round to the nearest dollar.) c. The change in net working capital will be $ (Round to the nearest dollar) d. The initial investment associated with the proposed new roaster will be $ (Round to the nearest dollar.) Enter your answer in each of the answer boxes. This course (FIN3403 Financial Mgt, Fall 2020 - DeSpain) is based on Zutter/Smart Principles of managerial Finance 15e a

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