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ME EXCHANGE LOCATION

QUESTION: i NEED TO SETUP MS EXCHANGE SERVER TO SEND AND RECEIVE EMAIL FOR MY COMPANY. ISHOULD I INSTALL MS EXCHANGE ON A SEPERATE SERVER?
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static-void

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You also don't want to install Exchange onto a server that is hosting active directory as its not a good idea.
installing exchange on a separate server has several advantages...

1.  Better control of messaging and mail debugging
2.  Load being distributed between various servers
3.  Exchange in separte host server keeps exchange in it's own blanket from other threats
4.  Opening port 25 to send and receive mail only to Exchange host server or Relay server prevents security compromise
5.  Exchange on host server enables easy to manage and review logs, event viewer, disk performance, access time, reboots, patching, updates, and port blocking if need be.

Lot of variable to be considered.  I hope this helps.
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Added to the above comments
If your company can afford then sure go for it.
How many users would be using this exchange server.
If possible have a domain controller and global catalog server in the same site.