Question: A new computer system will require an initial outlay of $25,000. but it will increase the firm's cash flows by $5,000 a year for each

A new computer system will require an initial outlay of $25,000.

A new computer system will require an initial outlay of $25,000. but it will increase the firm's cash flows by $5,000 a year for each of the next 7 years. a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 10%. What if it is 15%? b. How high can the discount rate be before you would reject the project

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