Question: A new computer system will require an initial outlay of $20,500, but it will increase the firms cash flows by $4,400 a year for each

A new computer system will require an initial outlay of $20,500, but it will increase the firms cash flows by $4,400 a year for each of the next 7 years.

A. Calculate the NPV and decide if the system is worth installing if the required rate of return is 10%.

B. Calculate the NPV and decide if the sytem is worth installing if the required rate of return is 15%.

C. How high can the discount rate be before you would reject the project?

I have the answer for A and B, I just need C.

A. 921.02, Yes

B. -2,194.15, No

C. Need Answer

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