Question 4: Bill Cavitt owns a data processing company. He plans to buy an additional computer for $20,000, use the computer for 3 years (Assume 50% depreciation is claimed), and sell it for $10,000. He expects that use of the computer will produce a net income of $8000 per year. The combined federal and state incremental tax rate is 45%. Using MACRS depreciation, determine the net present worth of the after-tax cash flow using an interest rate of 12%