Q$9$: NPV and maximum return A firm can purchase new equipment for a $$15,000$ initial investment. The equipment generates an annual after$-$tax cash inflow of $$6,000$ for $4$ years.

a$.$ Determine the net present value $($NPV$)$ of the asset, assuming that the firm has a cost of capital of $11\%.$ Is the project acceptable?

b$.$ Determine the maximum required rate of return that the firm can have and still accept the asset.

a$.$ The net present value $($NPV$)$ of the new equipment is $

$($Round to the nearest cent.$)$