Question: A new computer system will require an initial outlay of $15,000, but will increase the firms' cash each of the next 6 years. a. Calculate

A new computer system will require an initial outlay of $15,000, but will increase the firms' cash 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%. Round 2 decimals

Net present value

Worth installing

b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 13%. Round 2 decimals

Net present value

Worth installing

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