Question: A new computer system will require an initial outlay of $17,500, but it will increase the firms cash flows by $3,500 a year for each of the next 8 years. a.Calculate the NPV and find out if the system worth installing if the required rate of return is 9%? What if it is 14%? I know the correct answers are 1871.87 at 9% and -1263.98 at 14%. However, When I do it, I get the wrong answer and I do it like this:0-17500 =npv(9%, -17500, 3500...3500...) 13500 = 1,717.13 23500 33500 43500 =npv(14%, -17500, 3500...3500...) 53500 =-1108.75 63500 73500 83500 Can anyone explan step by step how to calculate an NPV? Can you help explain how to do this on excel? And perhaps by hand? This is holding me up and I know I

A new computer system will require an initial outlay of $17,500, but it will increase the firms cash flows by $3,500 a year for each of the next 8 years. a.Calculate the NPV and find out if the system worth installing if the required rate of return is 9%? What if it is 14%? I know the correct answers are 1871.87 at 9% and -1263.98 at 14%. However, When I do it, I get the wrong answer and I do it like this:0-17500 =npv(9%, -17500, 3500...3500...) 13500 = 1,717.13 23500 33500 43500 =npv(14%, -17500, 3500...3500...) 53500 =-1108.75 63500 73500 83500 Can anyone explan step by step how to calculate an NPV?