Prestige Medical company is considering replacing its existing computer system that was purchased two years ago at a cost of R328,000. the system can be sold today for R190,000. It has wear and tear over a five-year straight-line period. A new computer system will cost R497,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 30% tax rate.

1. Calculate the tax value of the existing computer system.
2. Calculate the after-tax proceeds of its sales for R190,000.
3. Calculate the initial investment associated with the replacement project