Server 1 Server 2 First cost, 113,641 Net cash flow, Syear 35,000 200,000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 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 - 16%, 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 = 16%. Server 1 Server 2 First cost, 113,641 Net cash flow, Syear 35,000 200,000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 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 - 16%, 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 = 16%