Information For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. Server 1 Server 2 First cost, $ 100,000 200,000 50,000 year 1. plus 5000 per year for years 2, 3, and 4 (gradient) Net cash flow, $/year 35.000 70.000 maximum for years 5 on, even if the server is replaced Life. years 3 or 4 5 Case Study Exercises Use spreadsheet analysis to determine the following: 1. If the MARR = 12%, which server should be selected? Use the PW or AW method to make the selection. For server 1 use 3 and 4 and for server 2 use 5 years. Note that you have to use LCM. 2. Use incremental ROR analysis to decide between the servers at MARR = 12%. Information For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. Server 1 Server 2 First cost, $ 100,000 200,000 50,000 year 1. plus 5000 per year for years 2, 3, and 4 (gradient) Net cash flow, $/year 35.000 70.000 maximum for years 5 on, even if the server is replaced Life. years 3 or 4 5 Case Study Exercises Use spreadsheet analysis to determine the following: 1. If the MARR = 12%, which server should be selected? Use the PW or AW method to make the selection. For server 1 use 3 and 4 and for server 2 use 5 years. Note that you have to use LCM. 2. Use incremental ROR analysis to decide between the servers at MARR = 12%