Question: 1)what's the best computer based on the simple payback method? What's the best computer based on the discounted payback method? B. Problems and Questions An
B. Problems and Questions An accountant must replace one of her aging computers. The key parameters (all arbitrary values) of the three computers under scrutiny are provided below Parameters Dell 2,150 4,800 at EOY1 2,400 at EOY1 4,000 at EOY1 HP 2,300 1. Initial Cost ($) 2,400 increasing by | increasing by | decreasing by 1% 5% annually | 1.5% annually 2. Revenues ($) annually thereafter thereafter thereafter 4,100 at EOY1 1,800 at EOY1 3,050 at EOY1 3. Operating costs increasing by increasing by increasing by 4% annually | 2% annually | 1.5% annually thereafter thereafter 400 5 thereafter 100 10 4. End-of-life salvage value ($ 300 5. Useful life (years) EOY-End-of-year Industry standard for computers 4 years . MARR 10%
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