Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a new computer system will require an initial outl

A new computer system will require an initial outlay of $17,500, but it will increase...

80.2K

Verified Solution

Question

Finance

A new computer system will require an initial outlay of $17,500, but it will increase the firms cash flows by $3,500 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%. (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%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) c. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Gary Vaynerchuck is a well known Marketer. He can be controversial. Review Gary's Facebook, LinkedIn, Newsfeeds...

Statistics
1.2K views

Answer the following questions: 1. In the following scenarios, identify whether or not it is uniform, binomial,...

Biology
1.2K views

the class is the intro to healthcare. Discuss the future development of your selected profession. What is...

Biology
1.2K views

What process is being observed by the organism shown here 0 0 Answer

Basic Math
1.2K views

4 4 points Tracy has several debts She owes approximately 8500 on a car loan...

Algebra
1.2K views

Use the given transformation to evaluate the integral.where R is the triangular region with vertices...

Accounting
1.2K views

Caps Lock has liabilities of $150,000 and $100,000 in equity. What is the value of...

Accounting
1.2K views

SAS Dataset: ACTG175 - R: AIDS Clinical Trials Group Study 175 (Open access online SAS...

Accounting
1.2K views

Joleen Co. had the following balances at the end of the last two years after...

Accounting
1.2K views

Corporation issued $620,000 of 5%, 15-year bonnd payable on March 31,2016. The market interest rate...

Accounting
1.2K views

On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account...

Finance
1.2K views

ans ? One year ago, you purchased a stock at...