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Duggar Consulting is considering purchasing two different types of servers. Server A will generate net cash inflows of $27,000 per year and have a zero
Duggar Consulting is considering purchasing two different types of servers. Server A will generate net cash inflows of $27,000 per year and have a zero residual value. Server A's estimated useful life is three years and it costs $43,000. Server B will generate net cash inflows of $29,000 in year 1, $10,000 in year 2, and $4,000 in year 3. Server B has a $5,000 residual value and an estimated life of three years. Server B also costs $43,000. Duggans required rate of return is 16%. Read the requirements. Requirement Calculate payback, accounting rate of return, net present value, and internal rate of return for both server investments. Use Microsoft Excel to calculate NPV and IRR. Begin with the payback period for Server A. (, X.X.) Now determine the payback period for Server B. (, X.X.) The payback period for Server B is years. Calculate the ARR (accounting rate of return) for both server investments. (Round all interim calculations to the nearest whole dollar. Round your answers to the nearest hundredth percent, X.XX%.) 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.) The NPV (net present value) of Server A is $
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