A new computer system will require an initial outlay of $14,150, but it will increase the firms cash flows by $3,100 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%.

B. Calculate the NPV and decide if the system is worth installing if the required rate of return is 15%.

C. How high can the discount rate be before you would reject the project?