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Problem 8 - 1 2 NPV / IRR ( LO 1 ) A new computer system will require an initial outlay of $ 1 4

Problem 8-12 NPV/IRR (LO1)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
is10%.(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
is15%.(Negative amount should be indicated by a
minus sign. Do not round intermediate calculations. Round your
answers to 2 decimal places.)

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