UP PUSS * Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents 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% 45% 32% 25% 15% 18% 7% 12% OWN 10 years 10% 18% 14% 12% 9% 8% 9% 9% 7% 6% Print Done Question Help Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $315,000. The system can be sold today for $210,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). A new computer system will cost $492,000 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 income and capital gains. a. Calculate the book value of the existing computer system. b. Calculate the after-tax proceeds of its sale for $210,000. C. Calculate the initial investment associated with the replacement project. a. The remaining book value is $ b. The after-tax proceeds will be s . (Round to the nearest dollar.) . (Round to the nearest dollar.) c. The initial investment will be $ . (Round to the nearest dollar.)