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Use the Following Information to Answer the Next Two Questions

Question 9

Multiple Choice

Use the following information to answer the next two questions:
A manufacturing firm is deciding whether to invest in a new printer that needs an initial investment of $150,000.This will increase cash flows in the first year by $80,000 and $75,000 in the second year.
-If the interest rate is 10% then the net present value of these cash flows is


A) $5,000
B) - $9,091
C) -$15,290
D) -$21,901

Correct Answer:

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