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A new computer system will require an initial outlay of $20,250, but it will increase the firms cash flows by $4500 a year for each
A new computer system will require an initial outlay of $20,250, but it will increase the firms cash flows by $4500 a year for each of the next 6 years.
A new computer system will require an initial outlay of $20,250, but it will increase the firm's cash flows by $4,500 a year for each of the next 6 years. 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 Step by Step Solution
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