Server 1 100,000 Server 2 100,000 First cost $ Net cash flow, $/year 35,000 25000 Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 70,000 maximum for years 5 on, even if the server is replaced 5 Life, years 3 4 Case Study Exercises Use spreadsheet analysis to determine the following: A- If the MARR = 12%, which server should be selected based on PW method to make the selection, (Hint: You have to use LCM for PW calculations) answer th e below questions: 1. The PW for server 1 (3 years) LCM cash flow= 2. The PW for server 2 ( 4 years) LCM cash flow = 3. The PW for server 3 ( 5 years) LCM cash flow = 4. Based on the PW analysis which option should be selected ? B- The ROR for each option, answer the below questions: 1. The ROR for server 1 over 3 years operation equal = 2. The ROR for server2 over 4 years operation equal 3. The ROR for server3 over 5 years operation equal = 4. Based on the ROR for each option which option we should select? C-Use incremental ROR analysis between server 2 and server 3 to decide which is the best option at MARR = 12%. Answer the below questions 1. As per the Descartes rule of signs for the NCF between servers 2&3, what is the maximum number of real_number Delta_i* that exist? 2. As per the Norstroms criterion, is there a one real-positive Delta_i* exist (enter yes or no)? 3. What is the value of Delta_i* between server 2 & 3 if exist ? 4. Based on the incremental analysis which option we should select if incremental analysis is applicable ? Server 1 100,000 Server 2 100,000 First cost $ Net cash flow, $/year 35,000 25000 Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 70,000 maximum for years 5 on, even if the server is replaced 5 Life, years 3 4 Case Study Exercises Use spreadsheet analysis to determine the following: A- If the MARR = 12%, which server should be selected based on PW method to make the selection, (Hint: You have to use LCM for PW calculations) answer th e below questions: 1. The PW for server 1 (3 years) LCM cash flow= 2. The PW for server 2 ( 4 years) LCM cash flow = 3. The PW for server 3 ( 5 years) LCM cash flow = 4. Based on the PW analysis which option should be selected ? B- The ROR for each option, answer the below questions: 1. The ROR for server 1 over 3 years operation equal = 2. The ROR for server2 over 4 years operation equal 3. The ROR for server3 over 5 years operation equal = 4. Based on the ROR for each option which option we should select? C-Use incremental ROR analysis between server 2 and server 3 to decide which is the best option at MARR = 12%. Answer the below questions 1. As per the Descartes rule of signs for the NCF between servers 2&3, what is the maximum number of real_number Delta_i* that exist? 2. As per the Norstroms criterion, is there a one real-positive Delta_i* exist (enter yes or no)? 3. What is the value of Delta_i* between server 2 & 3 if exist ? 4. Based on the incremental analysis which option we should select if incremental analysis is applicable
