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Example 3 NetMovies, Inc. is considering the purchase of new on-demand movie servers that will allow it to reach viewers faster. The cash flows for

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Example 3 NetMovies, Inc. is considering the purchase of new on-demand movie servers that will allow it to reach viewers faster. The cash flows for the two servers are given below: (a) Under what circumstances would you choose the Osborne model over the Sinclair model? Sinclair over Osborne? (b) What is the NPV of the servers at costs of capital of 0%,10%, and 20% ? What are the IRRs on the servers

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