Question: A new computer system will require an initial outlay of $18,000, but it will increase the firm's cash flows by $3,700 a year for each
A new computer system will require an initial outlay of $18,000, but it will increase the firm's cash flows by $3,700 a year for each of the next 7 years, a. Calculate the NPV and decide if the system is worth isstalling if the required rate of return is 10%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 15%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places
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