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MetaA new computer system will require an initial outlay of $ 2 0 , 0 0 0 , but it will increase the firm s

MetaA new computer system will require an initial outlay of $20,000, but it will increase the firms cash flows by $4,000 a year for each of the next 8 years.
Calculate the NPV and decide if the system is worth installing if the required rate of return is 9%.
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.MetaA new computer system will require an initial outlay of $20,000, but it
will increase the firm's cash flows by $4,000 a year for each of the next
8 years.
a. Calculate the NPV and decide if the system is worth installing if
the required rate of return is 9%.
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 14%.
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 installingMetac. How high can the discount rate be before you would reject the
project?
Note: Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.
Maximum discount rate
%
Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%.
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.
A new computer system will require an initial outlay of $20,000, but it will increase the firm's cash flows by $4,000 a year for
each of the next 8 years.
a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 9%.
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
b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%.
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
c. How high can the discount rate be before you would reject the project?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Maximum discount rate
%How high can the discount rate be before you would reject the project?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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