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$.)$

Amount invested

$-$:

Expected annual net cash inflow

$=$

Payback

Server A

$$42,000$

$-$:

$$26,000$

$=$

$1\mathrm{.}6$

years

Part $2$

Now determine the payback period for Server B$.($Round your answer to one decimal$$ place, X$.$X$.)$

The payback period for Server B is

$3\mathrm{.}0$

years.

Part $3$

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$\%.)$

Average annual operating income

$-$:

Average amount invested

$=$

ARR

Server A

$-$:

$=$

$\%$

Server B

$-$:

$=$

$\%$