Question: A new computer system will require an initial outlay of 30,000, but it will increase the firms cash flows by 9,000 a year for each
A new computer system will require an initial outlay of 30,000, but it will increase the firms cash flows by 9,000 a year for each of the next 5 years. Calculate the NPV and decide if the system is worth installing if the required rate of return is 16%.
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