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4. (10 pts) A firm needs to buy 2 computer servers. IBM and Dell have products that suit their needs outside of value. The CF
4. (10 pts) A firm needs to buy 2 computer servers. IBM and Dell have products that suit their needs outside of value. The CF profiles (in $000) for a single server for each company are shown in the table below. t=0 2 3 4 5 Company Dell 6.5 5.7 5 5 3 -19.8 -14 IBM 5 4 -3 6.5 6.6 a. What are the NPVs for each product for discount rates ranging from 1% to 15% by increments of 1%? You can use the NPV function in Excel. Graph them. b. If the opportunity cost for each is each is 5%, which company's product would you buy? What if you only have $35K to spend today, what would you buy? C. What it the opportunity cost rose to 7.5%, which would d. Using the NPV information, what are approximate IRRs for each product? What are the actual IRRs using the IRR function in Excel? you choose
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