Abco Pty Ltd Is Considering the Purchase of $60 000

Abco Pty Ltd is considering the purchase of $60 000 in tools.The manager estimates that the tools will generate $25 000 in savings during each year of a four-year life.The tools will be depreciated based on the following schedule.The expected tax rate is 30 per cent.What is the net present value of the investment,assuming an after-tax hurdle rate of 14 per cent?

A) $5001
B) ($9005)
C) $23 700
D) ($1720)