A Customer Plans to Migrate from Two Fully Depreciated High

question 4

Multiple Choice

A customer plans to migrate from two fully depreciated high end Relational Database Management System (RDMS) servers, which are out of warranty and still under a support contract. An architect has recommended the customer migrate to four new HPE Superdome X BL920 (2P/18C) blades running Microsoft SQL server. Which cost statement provides a rationale for the migration?

• A) Based on the TCO/ROI analysis for this project, the Apollo 4510 System makes a better choice as a SQL Database server platform for this migration
• B) The amount of savings from not renewing the service contract on the existing equipment can pay for the new hardware in just a little over three years
• C) The NPV of -$100,000 USD more than justifies the purchase price of the new equipment
• D) The IRR for this proposal would have to be extended out for ten years to make sense, as the IRR value for the first three years is nearly 20 percent

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Definitions:

Expected Rate of Return

The anticipated earnings on an investment, typically expressed as an annual percentage.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

MU/P Ratio

The MU/P Ratio stands for the marginal utility to price ratio, used in economics to analyze consumer choice by comparing the additional satisfaction (utility) received from an increase in consumption of a good relative to its price.

Marginal Utility

The alteration in pleasure or usefulness a person receives from using an extra unit of a product or service.