Please complete the below 6 questions. Show your work!

1. ****Question 1a and 1b relates to the following table of mutually exclusive alternatives. The planning horizon is 6 years, the cash-flow streams are in after-tax terms, and the after-tax MARR is 12%

A0 A1 A2 A6 A8 A9 A10 A14 Investment $0 $200k $750k $950k $450k $650k $1200k $1400k Annual Revenue $0 $250k $500k $560k $200k $450k $700k $760k Annual Cost $0 $50k $20k $30k $40k $90k $60k $70k Salvage Value $0 $0 $0 $0 $50k $50k $50k $50k
1a. In what order should these alternatives be compared?

1b. Show the present worth on incremental investment calculations and identify the best alternative. Show your work at the same level of detail as possible

****Question 2a and 2b relate to the following situation: InterConnect, Inc. Is an Internet service provider (ISP) and is considering buying a network server for $25,000. The end-of-year-1 savage value is expected to be $20,000 and to decrease at a rate of $2000 per year for each year after that. The operating and maintenance costs will start at $2000 per year and increase at a rate of $500 per year for each year after that. InterConnect’s MARR is 12%.

2a. Complete the following table for computing the economic life of the network server.

End of Year (1)
Salvage Value if Retired at Year n
(2)
AE(i) cost if retired in Year n [CR(i)]
(3)
Operating & Maintenance Costs for Year n (4)
PW(i) of O&M for Year n in Year 0 (5)
Sum of Years 0 O&Ms through Year n (6)
AE(i) Cost of Operating for n Years (7)
Total AE(i) if Retired at Year n 1 2 3 4 5 6 7 8 9 10 11

2b. What is the economic life of the network server and what is the total AE(i) of retiring it at its economic life?

3. Using the economic life calculated in the previous question, what is the implied salvage value of the network server at the end of year 3?

4. The…