Vastine$$ Medical, Inc., is considering replacing its existing computer$$ system, which was purchased $3$ years ago at a cost of $$334,000.$ The system can be sold today for $$199,000.$ It is being depreciated using MACRS and a$5-$year recovery period$($see the table LOADING... $).$ A new computer system will cost $$497,000$ 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$$ after$-$tax proceeds of its sale for $$199,000.$

c$.$ Calculate the initial investment associated with the replacement project.