Question: A new computer system will require an initial outlay of $12,850, but it will increase the firm's cash flows by $3,000 a year for each

A new computer system will require an initial outlay of $12,850, but it will increase the firm's cash flows by $3,000 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%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Net present value Worth installing should be Calculate the NPV and decide if the system is worth installing if the required rate of is 13%. (Negative amo indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Net present value Worth installing
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
