Question: Homework Saved Help Save A new computer system will require an initial outlay of $14.750, but it will increase the firm's cash flows by $3,600

 Homework Saved Help Save A new computer system will require an
initial outlay of $14.750, but it will increase the firm's cash flows

Homework Saved Help Save A new computer system will require an initial outlay of $14.750, but it will increase the firm's cash flows by $3,600 a year for each of the next 6 years. a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%. (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 2 decimal places.) Net present value Worth installing b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 13%. (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 2 decimal places.) Net present value Worthing b. Calculate the NPV and decide if the system is worth Installing if the required rate of return is 13%. (Negative amount should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 2 decimal places.) Net present value Worth installing c. How high can the discount rate be before you would reject the project? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Maximum discount rate

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