Irvin Enterprises is considering the purchase of a new piece of equipment to replace the current equipment. The new equipment costs R800,000 and requires R50,000 in installation and transportation costs. It will be depreciated over a 5 year straight-line period. The old piece of equipment was purchased four years ago for an installed cost of R.500,000; it had also wear and tear over a 5-year straight-line period. The old equipment can be sold today for R 80,000 net of any removal or cleanup costs. As a result of the proposed replacement, the firm's investment in net working capital is expected to increase by R70,000. The firm pays taxes at a rate of 27%. Required: a. Calculate the tax value of the old piece of equipment. Tax Value =R b. Determine the taxes, if any, attributable to the sale of the old equipment. Tax on sale of asset = F Tax savings or Tax liability = c. Find the initial investment associated with the proposed equipment replacement. Initial investment =R