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PLEASE SHOW ALL WORK AND MAKE ANSWERS CLEAR THANK YOU m Requirement 1. Calculate payback, accounting rate of return, net present value, and internal rate
PLEASE SHOW ALL WORK AND MAKE ANSWERS CLEAR THANK YOU
m
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.) = Payback Server A . years Now determine the payback period for Server B. (Round your answer to one decimal place, X.X.) The payback period for Server B is years. Calculate the accounting rate of return (ARR) for both server investments. (Round all intermediary calculations to the nearest whole dollar. Round your answers to the nearest hundredth percent, X.XX%.) ARR Server A % Server B II % 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.) NPV Server A Server B 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%.) IRR Server A % Server B % Requirement 2. Assuming capital rationing applies, which server should Pierre Computer Company invest in? than the server's operating life, NPV is and Based on the calculated results in Requirement 1, Server A The payback period is the ARR and IRR are both than the required rate of return. Based on the foregoing quantitative factors, Server A is the server's operating life, NPV is and Based on the calculated results in Requirement 1, Server B The payback period 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 Pierre 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 Pierre should invest in Server A. B. Based on the foregoing quantitative factors alone, both Server A and Server B should be rejected. Qualitative factors do not need to be considered. C. Based on the foregoing quantitative factors alone, both Server A and Server B should be accepted. Qualitative factors do not need to be considered. D. Based on the foregoing quantitative factors, Server A should be rejected. If qualitative factors do not change the decision, then Pierre should invest in Server B. 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.) = Payback Server A . years Now determine the payback period for Server B. (Round your answer to one decimal place, X.X.) The payback period for Server B is years. Calculate the accounting rate of return (ARR) for both server investments. (Round all intermediary calculations to the nearest whole dollar. Round your answers to the nearest hundredth percent, X.XX%.) ARR Server A % Server B II % 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.) NPV Server A Server B 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%.) IRR Server A % Server B % Requirement 2. Assuming capital rationing applies, which server should Pierre Computer Company invest in? than the server's operating life, NPV is and Based on the calculated results in Requirement 1, Server A The payback period is the ARR and IRR are both than the required rate of return. Based on the foregoing quantitative factors, Server A is the server's operating life, NPV is and Based on the calculated results in Requirement 1, Server B The payback period 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 Pierre 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 Pierre should invest in Server A. B. Based on the foregoing quantitative factors alone, both Server A and Server B should be rejected. Qualitative factors do not need to be considered. C. Based on the foregoing quantitative factors alone, both Server A and Server B should be accepted. Qualitative factors do not need to be considered. D. Based on the foregoing quantitative factors, Server A should be rejected. If qualitative factors do not change the decision, then Pierre should invest in Server BStep by Step Solution
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