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Title: Duggar Consulting is considering purchasing two different types of servers. Post by: mebeme on Oct 29, 2015 ???A server a will generate net cash inflows of $26000 per year and have a zero residual value. Server A’s estimated useful life is three years and it costs $44000. Server B will generate net cash inflows of $28000 in year 1, $11000 in year 2, and $5000 in year 3. Server B has a $5000 residual value and an estimated life of three years. Server B also costs $44000. Duggar’s required rate of return is 14%
Calculate payback, accounting rate of return, net present value, and internal rate of return for both server investments. Title: Re: Duggar Consulting is considering purchasing two different types of servers. Post by: bio_man on Oct 29, 2015 The full solution to this question is attached below.
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