If the MARR = 12%, which server should be selected? Use the PW to make the selection. You may use excel for your analysis. In this scenario, we will evaluate available computers that can provide the server feature requiredto make this interconnection available and efficient. The first expense forecasts and other parameters,including estimated contribution to annual net cash flow, are summarized below.Server 1Server 2php 100,000Php 35,000php 200,000php 50,000 year 1, plus 5,000per year for years 2, 3, and 4(gradient)php 70,000 maximum for years5 on, even if the server isreplaced.5 or 8First CostNet Cash Flow, per yearLife, years3 or 4The life estimates were developed by two different individuals: a design engineer and amanufacturing manager. They have asked that, at this stage of the project, all analyses be performed usingboth life estimates for each system. Currently, ACCESS Corp. software used in 3D printer systems can produce voids, cones, and"web support" to save development time. Network printing can be used on different devices and locationsworldwide. New software, called JIT II, is being beta-tested to enable remote machine connections ofIHOT-type (Industrial Internet of Things). When on-board control sensors detect that a device is about tofail or it is time to repair one of the high-profile modules, the JIT II software will immediately queue theproduction code of the component onto a 3D printer detected to be locally idle or available. The companyclaims it can design and produce the JIT II technology, 3D printers, and corresponding computerequipment needed to place this technology in a wide variety of harsh environments-chemicallypoisonous to humans, in flight, underwater mines, on the ocean floor, in war-torn countries, etc.

PW is the current value of cash flows that are expected to occur in the future.

Answered: In this scenario, we will evaluate…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter16: Auditing It Controls Part Iii: Systems Development, Program Changes, And Application Auditing

Section: Chapter Questions

Problem 3P

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If the MARR = 12%, which server should be selected? Use the PW to make the selection. You may use excel for your analysis.

In this scenario, we will evaluate available computers that can provide the server feature required
to make this interconnection available and efficient. The first expense forecasts and other parameters,
including estimated contribution to annual net cash flow, are summarized below.
Server 1
Server 2
php 100,000
Php 35,000
php 200,000
php 50,000 year 1, plus 5,000
per year for years 2, 3, and 4
(gradient)
php 70,000 maximum for years
5 on, even if the server is
replaced.
5 or 8
First Cost
Net Cash Flow, per year
Life, years
3 or 4
The life estimates were developed by two different individuals: a design engineer and a
manufacturing manager. They have asked that, at this stage of the project, all analyses be performed using
both life estimates for each system.

Transcribed Image Text:Currently, ACCESS Corp. software used in 3D printer systems can produce voids, cones, and "web support" to save development time. Network printing can be used on different devices and locations worldwide. New software, called JIT II, is being beta-tested to enable remote machine connections of IHOT-type (Industrial Internet of Things). When on-board control sensors detect that a device is about to fail or it is time to repair one of the high-profile modules, the JIT II software will immediately queue the production code of the component onto a 3D printer detected to be locally idle or available. The company claims it can design and produce the JIT II technology, 3D printers, and corresponding computer equipment needed to place this technology in a wide variety of harsh environments-chemically poisonous to humans, in flight, underwater mines, on the ocean floor, in war-torn countries, etc.

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