A new computer system will require an initial outlay of $24,000, but will increase the firm's cash flows by $4,800 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 calcualtions. Round your answers to 2 decimal places.)

rate of return NPV Worth installing (yes or no)

8% $______ _______

13% $______ ________

b. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal placces.)

maximum discount rate __________________%