Gavin and Alex, Baseball Consultants, Are in Need of a Microcomputer

question 16

Essay

Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff. They have received three proposals, with related facts as follows:
The company uses straight-line depreciation for all capital assets.
Required:
a. Compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%.
b. Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why?

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Definitions:

Hertz

A unit of frequency in the International System of Units (SI), denoting one cycle per second.

Place Theory

A proposal about pitch perception stating that regions of the basilar membrane respond to particular sound frequencies, and the nervous system interprets the excitation from different basilar regions as different pitches.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear, playing a crucial role in the process of hearing.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for converting sound waves into electrical signals that can be interpreted by the brain as sound.