Meta is considering the purchase of new virtual reality servers with a $10$ year midpoint point in

their asset depreciation range. Refer to Table $12-11$ in your text to find the appropriate MACRS

depreciation schedule. The servers will cost $$185,000$ and will produce expected earnings

before depreciation and taxes of $$47,000$ per year for the next $3$ years. Then that figure drops

to $$29,000$ for each of the next $7$ years. The firm has a tax rate of $28\%$ and a WACC of $11\%,$

determine the net present value of the servers. Should Meta purchase them?