A new computer system will require an initial outlay of


A new computer system will require an initial outlay of $150,000, but it will increase the firm’s cash flows by $25,000 a year for each of the next 8 years. Calculate the NPV of the project using an 11% discount rate. Should the project be accepted at 11%? Why?

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Financial Management: A new computer system will require an initial outlay of
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