Philton Computer Company is considering purchasing two different types of servers. Server A will generate net cash inflows of $26,000 per year and have a zero residual value. Server A's estimated useful life is three years, and it costs $44,000. Server B will generate net cash inflows of $28,000 in year 1,$11,000 in year 2 , and $5,000 in year 3 . Server B has a $5,000 residual value and an estimated useful life of three years. Server B also costs $44,000. Philton Computer Company's required rate of return is 14%. Read the requirements. Requirement 1. 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. (Round your answer to one decimal place, X.X.) Expected annual net cash inflow Calculate the internal rate of return (IRR) for both server investments. Use Microsoft Excel to calculate IRR. (Round the IRR calculations to two decimal places, X.XX\%.) Requirement 2. Assuming capital rationing applies, which server should Philton Computer Company invest in? Based on the calculated results in Requirement 1 , Server A The payback period is than the server's operating life, NPV is the ARR and IRR are both than the required rate of return. Based on the foregoing quantitative factors, Server A is Based on the calculated results in Requirement 1 , Server B | The payback period is the server's operating life, NPV is the ARR and IRR are both than the required rate of return. Based on the foregoing quantitative factors, Server B is Assuming capital rationing applies, which server should Philton Computer Company invest in? A. Based on the foregoing quantitative factors, Server B should be rejected. If qualitative factors do not change the decision, then Philton should invest in Server A. B. Based on the foregoing quantitative factors alone, both Server A and Server B should be accepted. Qualitative factors do not need to be considered. C. Based on the foregoing quantitative factors, Server A should be rejected. If qualitative factors do not change the decision, then Philton should invest in Server B. D. Based on the foregoing quantitative factors alone, both Server A and Server B should be rejected. Qualitative factors do not need to be considered