The discount rate be before you would reject the project

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Reference no: EM131992584

A new computer system will require an initial outlay of $24,500, but it will increase the firm's cash flows by $4,900 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%. Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%. How high can the discount rate be before you would reject the project?

Reference no: EM131992584

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