Question: I only need help with question C A new computer system will require an initial outlay of $22,000, but it will increase the firm's cash
I only need help with question C
A new computer system will require an initial outlay of $22,000, but it will increase the firm's cash flows by $4,400 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 is10%.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
-578.95
b.Calculate the NPV and decide if the system is worth installing if the required rate of return is15%.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
- 3694.16
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.)
????
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