A new computer system will require an initial outlay of $22,000, but it will increase the firms cash flows by $4,700 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%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.

b)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.