Question Heip Calculating initial investment DuPree Coffee Roasters, Inc, wishes to expand and modemize its facilties The installed cost of a proposed computer-controlled automatic feed roaster will be $133,000. The firm has a chance to sell its 4-year old roaster for $35,000. The existing roaster originally cost $60,200 and was being depreciated using MACRS and a 7-year recovery period (see the table m) DPree is subject to a 40% tax rate. a. What is the book vale of the existing roaster? b. Calculate the ater tax proceeds of the sale of the existing roaster c. Calculate the change in net working capital using the following figures Data Table Anticipated Changes in Current Assets and Current Liabilities Cancel -$19,100 + 50,800 Accruals (Click on the icon located on the top right comer of the data table below in order to copy its contents into a spreadsheet) Inventory Accounts payable Accounts receivable +40.600 Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes +71.000 (Round to the nearest dollar) a. The remaining book value of the existing roaster is S Percentage by recovery year 5 years 20% 32% 7 years 10 years 10% 18% Round to the nea 3 years 33% Recovery year b. The ater tax proceeds of the sale of the existing roaster wil be S 14% 25% 45% 15% c. The change in net working captal wil be S (Round to the nearest dollar) 14% 12% 18% 12% 9% 19% 12% 12% (Round to d. The intial ivestment associated with the proposed new roaster will be S 9% 5% 7% 6% 4% 6% 10 11 4% 100% 100% 100% Totals "These percentages have been rounded to the nearest whole pencent to simpity calculations while retainng 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 100% Print Done