A new computer system will require an initial outlay of $16,500, but it will increase the firms cash flows by $3,300 a year for each of the next 6 years.

Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%. What if it is 13%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

A)

Rate of Return	NPV	Worth Installing
8%	$	Yes or No
13%	$	Yes or No

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

%