A new computer system will require an initial outlay of $14,950, but it will increase the firm’s cash flows by $3,300 a year for each of the next 6 years. What is the net present value of the computer system at a discount rate of 5%?
A) $10,079.90
B) $11,324.52
C) $13,561.67
D) $15,123.45
