Question: A new computer system will require an initial outlay of $16,500, but it will increase the firms cash flows by $3,300 a year for each

A new computer system will require an initial outlay of $16,500, but it will increase the firms cash flows by $3,300 a year for each of the next 6 years.

A) Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%. What if it is 13%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Rate of return NPV Worth Installing
8% $ Yes or No
13% $ Yes or No

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