Multiple Choice
Use the following setup for the next question.
A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000.The investment would increase cash flows in the first year by $80,000 and in the second year by $75,000.
-If the interest rate is 10% then the net present value of the investment is
A) $5,000
B) - $9,091
C) -$15,290
D) -$21,901
Correct Answer:
Verified
Correct Answer:
Verified
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