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Windows Server 2012r2 Essentials hardware recommendation for 10 users with no growth in number of users

Would anyone care to comment on the specs for an essentials server for 10 total users, more likely 5 users at any one time / very light usage.  They had been using SBS 2003 and are over due for replacement.  May do virtualization of the server.

I'd like to build a 'good' server but not throw money away on this.

Dell OptiPlex T110-2?  It's be in an open office so shouldn't be too noisy -

RAM - 16?  or 32.  32 is overkill for this number of users, right?  would you say 16 is just right or also overkill?  What if we don't virtualize?

RAID - hardware PERC H200? Or S300?  the S300 isn't really hardware, right? We are thinking we'd do raid 1 with a hot spare.

Hard drives? They have about 50GB of data after all these years.  I was thinking 2 drives, each 1 TB in a RAID 1 configuration. Would you use SATA or SAS?  Again for the few users, SAS seems overkill?

Thank you
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Zephyr ICT
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virtualization would be hyper v. but again, we likely won't do that anway.
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Cris Hanna
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Chris - yes 2012 R2 essentials (in the title of the question?!   : )  nothing else running on the serve

e3-1270 is low end CPU?

that's the best one they offer for the T110-II

 Intel® Xeon® E3-1220 3.10 GHz, 8M Cache, Turbo, Quad Core/4T (80W)
 Intel® Xeon® E3-1220v2 3.10 GHz, 8M Cache, Turbo, Quad Core/4T (69W)      
 Intel® Xeon® E3-1230v2 3.30 GHz, 8M Cache, Turbo, Quad Core/8T (69W)      
 Intel® Xeon® E3-1240 3.30 GHz, 8M Cache, Turbo, Quad Core/8T (80W)      
 Intel® Xeon® E3-1240v2 3.40 GHz, 8M Cache, Turbo, Quad Core/8T (69W)      
 Intel® Xeon® E3-1270v2 3.50 GHz, 8M Cache, Turbo, Quad Core/8T (69W)
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