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the following has multiple parts please answer all Calculating initial investmentDuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of

the following has multiple parts please answer all

Calculating initial investmentDuPree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be

$125,000.

The firm has a chance to sell its

3-year-old

roaster for

$35,600.

The existing roaster originally cost

$59,000

and was being depreciated straight-line over 7 years. DuPree pays taxes at a rate of

40%.

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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:

d. Calculate the initial investment associated with the proposed new roaster.

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image text in transcribed

Anticipated Changes in Current Assets and Current Liabilities Accruals - $19,600 Inventory + 49,100 Accounts payable +40,200 Accounts receivable + 70,700 Cash 0 Notes payable + 15,100 a. The remaining book value of the existing roaster is $ (Round to the nearest dollar.) b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar.) c. The change in net working capital will be $ (Round to the nearest dollar.) d. The initial investment associated with the proposed new roaster will be $ . (Round to the nearest dollar.) Anticipated Changes in Current Assets and Current Liabilities Accruals - $19,600 Inventory + 49,100 Accounts payable +40,200 Accounts receivable + 70,700 Cash 0 Notes payable + 15,100 a. The remaining book value of the existing roaster is $ (Round to the nearest dollar.) b. The after-tax proceeds of the sale of the existing roaster will be $ (Round to the nearest dollar.) c. The change in net working capital will be $ (Round to the nearest dollar.) d. The initial investment associated with the proposed new roaster will be $ . (Round to the nearest dollar.)

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