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parts a b and c Calculating initial Investment Vastine Medical, Ino, considering replacing to existing computer system, which was purchased 3 years ago ata oont

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Calculating initial Investment Vastine Medical, Ino, considering replacing to existing computer system, which was purchased 3 years ago ata oont of $323,000. The system can be sold today for $201.000. It is being depreciated using MACRS and a 5-year recovery period (see the table A new computer system will cost $510,000 to purchase and install. Replacement of the computer system would not involve any change in networking capital. Assume a 40% 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 ts sale for $201.000 c. Calculate the initial investment atrociated with the replacement project Data Table a. The remaining book value is $0 (Round to the nearest dolar) (Click on the con here in order to copy the contents of the datatable below into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Porcentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 20% 14% 10% 2 45% 32% 25% 18% 3 19% 18% 14% 7% 12% 12% 12% 5 99. 996 95 896 7 95 7% 8 45 6% 9 5% 10 8% 11 49 Total 100% 100% 100% 100% Enter your answer in the answer box and then click Check Answer "These percentages have been founded to the nearest whole percent to simply calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded porcentages or directly apply double declining balance 200%) depreciation using the hat year remaining convention 15% 12 2 parts

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