Question: A new computer system will require an initial outlay of $20,000, but it will increase the firm's cash flows by $4,000 a year for each

A new computer system will require an initial outlay of $20,000, but it will increase the firm's cash flows by $4,000 a year for each of the next 8 years. Is the system worth installing if the required rate of return is 9%? What if it is 14%? How high can the discount rate be before you would reject the project?

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