A new computer system will require an initial outlay of $$14,950,$ but it will increase the firm's cash flows by $$3,300$ a year for each of

the next $6$ years.

$03$:$55$:$06$

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a$.$ Calculate the NPV and decide if the system is worth installing if the required rate of return is $8\%.$

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 $13\%.$

Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to

$2$ decimal places.

Net present value

Worth installing