Question: a new computer system will require an initial outlay of $15,000 but it will increase the firm's cash flows by $4,000 a year for each

a new computer system will require an initial outlay of $15,000 but it will increase the firm's cash flows by $4,000 a year for each of the next 8 years. Is the system worth installing if the rquited rate of return is 8 percent? what if it is 13 percent? How high can the discount rate be before you would reject the project?

3 po QUESTION 1 A new computer system will require an initial outlay of $15,000 but it will increase the firm's cash flows by $4,000 a year for each of the next 8 years. Is the system worth installing if the required rate of return is 8 percent? What if it is 13 percent? How high can the discount rate be before you would reject the project

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