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Please complete A-C thank you in advance :) Calculating initial investment DuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost
Please complete A-C thank you in advance :)
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 $122,000. The firm has a chance to sell its 3-year-old roaster for $35,500. 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 Inventory Accounts payable Accounts receivable -$21,000 +49,800 +40,600 +70,200 Data table Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 5 6 7 8 9 10 11 Totals 3 years 33% 45% 15% 7% 100% Percentage by recovery year" 5 years 7 20% 32% 19% 12% 12% 5% 100% years 14% 25% 18% 12% 9% 9% 9% 4% 100% 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% 4% 100% I X k ans 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 Inventory Accounts payable Accounts receivable -$21,000 +49,800 +40,600 +70,200 a. The remaining book value of the existing roaster is $ A (Round to the nearest dollar.) Step by Step Solution
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