Question: calculate the net present value and PV for both server investments. use Microsoft Excel to calculate NPV Phyllo Computer Company is considering purchasing two different

calculate the net present value and PV for both server investments. use Microsoft Excel to calculate NPV

calculate the net present value and PV for both server investments. use

Phyllo Computer Company 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 $42,000. Server B will generate net cash inflows of $27,000 in year 1, $14,000 in year 2, and $1,000 in year 3. Server B has a $4,000 residual value and an estimated useful life of three years. Server B also costs $42,000. Phyllo Computer Company's required rate of return is 12%. Read the requirements. FALALA Server A 12,000 1,333 21,000 23,000 57.14% 5.80 % Server B Calculate the net present value (NPV) for both server investments. Use Microsoft Excel to calculate NPV. (Round the NPV calculations to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) NPV Server A Server B SA S

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!