Question: 5. Two mutually exclusive alternative server systems are being considered as upgrades to your e-commerce company's existing servers. The servers host your website, manage transactions,

5. Two mutually exclusive alternative server systems are being considered as upgrades to your e-commerce company's existing servers. The servers host your website, manage transactions, inventory, and billing. The estimated cash flows from such activities for each alternative are given below along with expenses that include maintenance and technician salary. Your company MARR is 8% per year. Using the PW method, which alternative should you prefer? Doing nothing at this time is not an option. State your assumptions and your reasoning for your selection. Server 1 Server 2 180000 Capital Investment Ann. Revenue Ann. Expense MV # end of useful life Useful Life 110000 49000 20000 4 220000 110000 40000 5000 6 IRR 16% 23% Oce er by

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