Question: 12. NPV/IRR. 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

12. NPV/IRR. A new computer system will require an initial outlay

12. NPV/IRR. 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. (LO8- ) a. Is the system worth installing if the required rate of return is 9% ? b. What if the required return is 14% ? c. How high can the discount rate be before you would reject the project

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