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​Use the Following Setup for the Next Question

Question 19

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 cost of the capital is 9%,is the investment feasible?


A) ​Yes because the NPV>0
B) Yes because the NPV=0
C) No because the NPV<0           
D) ​Need information on the marginal benefits and costs

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