question point possible Calculating initial cash flow Vastine Medical, Inc., in considering replacing its existing computer system, which was purchased 3 years ago at a cost of 5334,000. The wystom can be sold today for $191,000. It is being depreciated using MACRS and a 5-year recovery period (now the tableA new computer system will cost 5508,000 to purchase and install Replacement of the computer system would not involve any change in not working capital. Assume a 21% 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 its sale for $191,000 c. Calculate the initial cash flow associated with the replacement project a. The remaining book value is $ (Round to the nearest dollar) b. The after-tax proceeds will be $ (Round to the nearest dollar.) c. The initial cash flow wil be $ (Round to the nearest dollar) Time Remaining: 01:20:29 Next Data table EX to computer a 21% tax rate (Click on the icon here in order to copy the contents of the data table below 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 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 7% 12% 12% 12% 12% 9% 9% 10 years Print Done