A new computer system will require an initial outlay of $20,500, but it will increase the firms cash flows by $4,100 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 is 10%. What if it is 15%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Rate of Return		NPV
10%	$
15%	$

b.	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

%