S: Homework: HW #16- Chapter 11A Score: 0 of 6 pts 3 of 6 (3 complete) HW Score: 13.78%, 5.65 of 4- P11-8 (similar to) Question Help Calculating initial investment Vastine Medical, Inc., is considering toplacing its existing computer system, which was purchased 2 years ago at a cost of $324,000 The system can be sold today for $199,000 It is being depreciated using MACRS and a 5 year recovery period (see the table A new computer system will cost $507,000 to purchase and install Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary incor and capital gains a. Calculate the book value of the existing computer system b. Calculato the after tax proceeds of its sale for $193,000 c. Calculate the initial investment associated with the replacement project a. The remaining book value is $(Round to the nearest dollar) - X Data Table 33% Fick 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 10 years 20% 14% 1096 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 79 12 12 12% 5 12 0% 0 99% 8% 7 99 8 49 6% 10 6% 11 49 Totals 100% 100% 100% 5% Check Answer 100% BI a