Question: 8. NPVARR. A new computer system will require an initial outlay of $20,000 but it will in- crease the firm's cash flows by $4,000 a
8. NPVARR. A new computer system will require an initial outlay of $20,000 but it will in- crease the firm's cash flows by $4,000 a year for each ofthe next 8 years. Is the system worth installing if the required rate of returm is 9 percent? What if it is 14 percent How high can the discount rate be be fore you would reject the project
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