qholmes02
qholmes02
26.05.2021 • 
Mathematics

Chapter 11 Problems --Part 2 Calculating initial investment Dupree Coffee Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed computer-controlled automaticfoed roaster will be $122,000. The form
has a chance to sell its 4-year-old roaster for $35,800. The existing roaster originally cost $60,300 and was being diſpreciated straight-line over 7 years. DuProe 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 not working capital using the following figures:
Anticipated Changes in Current Assets and
Current Liabilities
Accruals
-$19,100
Inventory
+49 200
Accounts payable
+ 39,800
Accounts receivable
+69,300
Cash
0
Ninten
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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