just need help with #3

show formula please

Degnan Dance Company, Inc, a manufacturer of dance and exerciso apparel, is cominetis replacing an existing piece of equipment with a more sophisticated machine. The following information is given. MACRS 5-Year Depreciation % 's: (20,32,19,12,12,5) The firm pays 40 percent taxes on ordinary income and capital gains. 1) Calculate the book value of the existing asset being replaced. Answer 48,000 2) Calculate the tax effect from the sale of the existing asset. 3) Calculate the initial investment required for the new asset