A new computer system will require an initial outlay of $24,000, but it will increase the firms cash flows by $4,800 a year for each of the next 6 years a Calculatethe NPV and find out if the system worth installing if the required rate of return is8 What if it is13 (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 $ (Click to select)NoYes 13 (Click to select)YesNo b How high can the discount rate be before you would reject the project (Do not round intermediate calculations Round your answer to 2 decimal places ) Maximum discount rate

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Question: A new computer system will require an initial outlay of $24,000, but it will increase the firms cash flows by $4,800 a year for each

A new computer system will require an initial outlay of $24,000, but it will increase the firms cash flows by $4,800 a year for each of the next 6 years.

a.	Calculatethe NPV and find out if the system worth installing if the required rate of return is8%? What if it is13%?(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%	$	(Click to select)NoYes
13%		(Click to select)YesNo

b.	How high can the discount rate be before you would reject the project?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Maximum discount rate

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