What is the after-tax present worth of the server the


Your company is planning to buy a server for $15,000 that will be depreciated using straight line method over 10 years with zero salvage value. The estimated before tax savings in the first year due to the new server is $5,000. If you sell the server at the end of the first year for $12,500 and your MARR is 5%, what is the after-tax present worth of the server? The combined tax rate is 30%. a. $1,212.3 b. $1012.2 c. $952.4 d. $890.70.

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Financial Management: What is the after-tax present worth of the server the
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