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Calculating initial investment DuPree Coffee Roasters, Inc, wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be $130,000 The firm has a chance to sell ts 5-year-old roaster for $34,200. The existing roaster originally cost $60.500 and was being depreciated straight-line over 7 years. DuPree pays taxes at a rate of 40%, 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 Anticipated Changes in Current Assets and Current Liabilities Accruals Inventory Accounts payable Accounts receivable -$19,600 +50,700 +39,800 69,000 a. The remaining book value of the existing roaster is s 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 dolar) d. The iniial investment associated with the proposed new roaster will be $ (Round to the nearest dollar ) the alter-tax proceeds of the sale of the existing roaster c. Calculate the change in net working capital using the following figures Anticipated Changes in Current Assets and Current Liabilities Accruals Inventory Accounts payable Accounts receivable Cash Notes payable -$19,600 + 50,700 +39,800 + 69,000 + 15.300 d. Calculate the initial investment associated with the proposed new roaster. 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 s(Round to the nearest dollar) d. The initial investment associated with the proposed new roaster will be s(Round to the nearest dolila)

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