Question: 2 MS U U U U Lumput w Score: 77.34%, 54.14 of 70 pts CP26-38 Continuing Problem (similar to) Question Help Donton Consulting is considering
2 MS U U U U Lumput w Score: 77.34%, 54.14 of 70 pts CP26-38 Continuing Problem (similar to) Question Help Donton Consulting is considering purchasing two different types of servers. Server A will generate net cash inflows of $26,000 per year and have a zero residual value. Server A's estimated useful life is three years and it costs $46,000. Server B will generate net cash inflows of $30,000 in year 1, $12,000 in year 2, and $4,000 in year 3. Server B has a $5,000 residual value and an estimated life of three years. Server B also costs $46,000. Donton's required rate of return is 14% Requirements 1. Calculate payback, accounting rate of retum, not present value, and internal rate of return for both server investments. Use Microsoft Excel to calculate NPV and IRR. 2. Assuming capital rationing applies, which server should Donton Invest in? Calculate the ARR (nccounting rate of return) for both server investments. (Round all interim calculations to the nearest whole dollar, Round your answers to the nearest hundredth percent, X.XX%.) ARR Server A Server B Choose from any list or enter any number in the input fields and then click Check Answer 5 parts remaining Clear All Check
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