Question: A new computer system will require an initial outlay of $18,750, but it will increase the firm's cash flows by $4,200 a year for cach

A new computer system will require an initial outlay of $18,750, but it will increase the firm's cash flows by $4,200 a year for cach of he next 6 years. a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 13%. Note: Negative amount should be indicated by a minus sign. Do not rounit intermediate calculations. Pound your answers to 2 decimal places

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