Question: A new computer system will require an initial outlay of $16,000, but it will increase the firm's cash flows by $3,200 a year for each

A new computer system will require an initial outlay of $16,000, but it will increase the firm's cash flows by $3,200 a year for each of the next 8 years.

a.Calculatethe NPV and find out if the system worth installing if the required rate of return is9%? What if it is14%?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Rate of Return

NPVWorth Installing9%$

(Click to select)

Yes

14%

(Click to select)

Yes

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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