Question: please show step by step to understand and please no excel. thanks TABLE 4.2 Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four

please show step by step to understand and please no excel.

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TABLE 4.2 Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 3 years 33% Percentage by recovery year? 5 years 20% 14% 32 25 7 years 1 10 years 2 10% 45 18 3 15 19 18 14 4 7 12 12 12 5 12 9 9 6 S 9 8 7 9 7 8 4 6 9 6 10 6 11 Totals 100% 100% 100% 100% 2. These percentages have been rounded to the nearest whole percent. 11-11 Calculating initial cash flow Vastine Medical Inc. is replacing its computer system, which was purchased two years ago at a cost of $325,000. The system can be sold today for $200,000. It is being depreciated using MACRS and a five-year recov- ery period. A new computer system will cost $500,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 21% tax rate. Calculate the book value of the existing computer system (see Table 4.2). b. Calculate the after-tax proceeds of its sale for $200,000. c. Calculate the initial cash flow associated with the replacement project. a. 11. Caseid the nunhan of

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