Question: Geek Inc. has decided to acquire a new Web Server. It has three options. IBM: purchase cost of $345,495 and operating costs of $24,794 in

Geek Inc. has decided to acquire a new Web Server. It has three options. IBM: purchase cost of $345,495 and operating costs of $24,794 in year 1, $21,932 in year 2, and $20,890 in year 3 (paid at the end of each year). Cisco: purchase cost of $224,501 and operating costs of $35,829 in year 1, $39,251 in year 2, and $35,765 in year 3 (paid at the end of each year). Sun: purchase cost of $274,864 and operating costs of $21,771 in year 1, $23,630 in year 2, and $20,000 in year 3 (paid at the end of each year). Assume that Geek Inc. has a budget of $311,023 for this investment and all web servers have a service life of 3 years. Based on the defender-challenger approach and given that the MARR is 9%, reinvestment rate is 5%, and minimum external rate of return is 7%, compute the incremental Benefit-Cost ratio of choosing the best web server (in economic terms) and then indicate your recommendation as follows: - answer 0 (without the commas) if your recommendation is the IBM server; - answer 1 (without the commas) if your recommendation is the Cisco server; - write down as your answer the value of the incremental B-C ratio if your recommendation is the Sun server. Note: round your answer to two decimal places

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