$1.$ XYZ Inc. is considering replacing its computers, purchased $2$ years ago for $$250,000,$ with a useful life of $4$ years. The computers can be sold today for $$110,000.$ New computers will cost $$330,000$ to purchase and install. Replacement of the computers would not involve any change in net working capital. Assume a $40\%$ tax rate.

a$)$ Calculate the book value of the existing computers.

b$)$ Calculate the after$-$tax proceeds of its sale for $$110,000.$

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