O Calculating initial Investment Vuline Medioaline, is considering replacing its exiving computer system, which was purchased 2 years ago at a cost of 331,000The system can be sold today for $200.000. It is being depreciated wing MACRS and a 5 your recovery period the table ) A new computer system will cost $601,000 to purchase and instal. Replement of the comportem would not involve any change in networking capital. Assume a 40% texte on ordinary income and capital gains a Calculate the book value of the existing computer system, b. Calculate the after-tax proceeds of the sale for $200.000 c. Calculate the initial investment sed with the replacement project Data Table The remaining book value is $(Round to the nearest dolu) b. The after-tax proceeds will be (Click on the loon located on the top right comer of the date table below in order to copy its contents into a (Round to the new dolar) spreadsheet) 6. The initial investment will be (Round to the nearest dolar) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 10 years 2016 10% 25 18% 19 ton 12 12% 5 12% 9 5% 12 6 8 4% ON 100% 10 11 Total 100% 100% 100% "These percentages have been founded to the nearest whole percent to my calculations while retaining room To calculate the actual depreciation for tax purposes, beure to apply the actual urrounded percentages or directly apply double declining balance (2005) depreciation using the half year convention Enter your answer in each of the newer boxes Print Done ng computer will cost $501,000 to purchase and install. Replacement of the compater system would not involve any change in net workin - X Data Table 3 4 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 15% 19% 18% 14% 7% 12% 12% 12% 5 12% 9% 9% 5% 9% 8% 7 9% 7% 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention 6 8