The management of a hospital is considering the installation

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The management of a hospital is considering the installation of new server which results in annual saving of $100,000 from labor costs. The server follows a straight-line (SL) depreciation with zero salvage value at the end of its 10 year service. The income tax rate is 40% and the after-tax MARR is 10%. What is the price of the server to justify its installation after considering the tax effect?

Reference no: EM13532915

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