Calculating initial investment. DuPree Coffee Roasters, Inc., wishes to expand and modemize its facillies. The...
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Calculating initial investment. DuPree Coffee Roasters, Inc., wishes to expand and modemize its facillies. The installed cost of a proposed computer-controlled automatic feed roaster will be $129,000. The firm has a chance to sell its 5 -year-old roaster for $34,100. The existing roaster originally cost $59,600 and was bein? depreciated using MACRS and a 7-year recovery period (see the table _. DuPree is subject to a 40% tax rale. a. What is the book value of the existing roaster? b. Calculate the atter-tax proceeds of the sale of the existing roaster. c. Calculate the change in net working capital using the following fifgures: a. The remaining book value of the existing roaster is $ (Round to the nearest dolar.) b. The ater-tax proceeds of the sale of the existing roaster will bes (Round to the nearest dollar.) c. The change in net woxking captial will bes (Round to the nearest dolar.) d. Tha initial lrivestment associatod with the propoced now roastor will bes (Round to the noarest dotur) (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 111 se percentages nave been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual


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