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A new computer system will require an initial outloy of $16,2$0, but it will increase the firmis cash flows by $3,900 a year for each
A new computer system will require an initial outloy of $16,2$0, but it will increase the firmis cash flows by $3,900 a year for each of the next 6 years. a. Colculate the NPV and decide if the system is worth instaling if the required rate of retum is 8%. Note: Negative amount should be indicated by a minus sign. Do not tound intermediate calculations, Round your answers to 2 decimal places. b. Calculote the NPV and secide if the watem is worth installing if the reculied rate of return is 13x Note: Negative amount should be indicated by a minus sign. Do not reund intermediate calculatiens. Round your answers to 2 decimai places
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