Item$2$

$10$

points

Time Remaining $3$ hours $23$ minutes $48$ seconds$03$:$23$:$48$

eBookPrintReferencesCheck my workCheck My Work button is now enabled$5$Item $2$

Time Remaining $3$ hours $23$ minutes $48$ seconds$03$:$23$:$48$

Problem $8-12$ NPV or IRR $($LO$1)$

A new computer system will require an initial outlay of $$15,650,$ but it will increase the firm$$s cash flows by $$3,400$ a year for each of the next $7$ years.

Calculate the NPV and decide if the system is worth installing 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 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. How high can the discount rate be before you would reject the project?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.