Your company is considering connecting your mainframe to the PC network. The mainframe currently only connects to terminals, but management wants to be able to access it from the desktop. You run a token ring network. The mainframe manufacturer supports Ethernet, but not token ring. Develop an outline of possible solutions for making this connection, including hardware options and possible reconfiguration of the mainframe.
2. Your company decided to permit employees to telecommute from home one or two days a week. All employees live in areas that CATV service, but some live in neighborhoods that are six miles from the nearest central office. What kind of connectivity solution makes the most sense if you want to use the same technology for all users? What is a possible downside of making such a choice?© BrainMass Inc. brainmass.com October 24, 2018, 9:58 pm ad1c9bdddf
This solution deals with two questions. The first question deals with token ring network and connectivity of mail frames to a PC network. The second solution deals with recommended connectivity for employees who stay in the vicinity of the company.
Cash Flow - The PC Shopping Network
The PC Shopping Network may upgrade its coomputer systems. It last upgraded 2 years ago, when it spent $115 million on equipment with an assumed life of 5 years and an assumed salvage value of $15 million for tax purposes. The firm uses straight-line depreciation.
The old equipment can be sold today for $80 million. A new modern computer system can be installed today for $150 million. This will have a 3-year life and will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $25 million per year and decrease operating costs by $10 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 35 percent and the discount rate for projects of this sort is 10 percent.
a. What is the net cash flow at time 0 if the old equipment is replaced?
b. What are the incremental cash flows in Years 1, 2, and 3?
c. What are the NPV and IRR of the replacement project?