Australian Wdgets is looking at a $400 000 digital midget rigid widget gadget. It is expected to save $85 000 per year over its 10-year life, with no scrap value. AWs tax rate is 45%, and its after-tax ALARR is 15%. On the basis of an exact IRR, and based on depreciation calculated on a straight-line basis, should AW invest in this gadget? 8.16 What is the after-tax present worth of a chip placer if it costs $55 000 and saves $17 000 per year? After-tax interest is at 10%. Assume the device will be sold for a $1000 salvage value at the end of its six-year life. Declining-balance depreciation is used, and the corporate income tax rate is 54%.