​Use the Following Setup for the Next Question

question 62

Multiple Choice

​Use the following setup for the next question.
A publisher is deciding whether or not to invest in a new printer.The printer would cost $900,and would increase the cash flows in year 1 by $500 and in year 3 by $800.Cash flows do not change in year 2.If the interest rate is 12%
-​If the interest rate is 25%,but cash flows change such that the investment renders a cash flow of $500 in year 1 and $800 in year 2 instead of year 3,would the investment take place?

• A)​Yes since NPV>0
• B)No since NPV<0
• C)Yes since the present value of the cash flows is greater than zero
• D)​No since the present value of the cash flows is lesser than zero

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Definitions:

Azygos Vein

A vein running up the right side of the vertebral column that drains blood from the chest wall and upper limbs back to the heart.

Thorax

The part of the body between the neck and the abdomen, enclosed by the ribcage, and containing the heart and lungs.

Abdomen

The part of the body containing the digestive organs; in humans, it is bound by the diaphragm and the pelvis.

Oxygenated Blood

Blood that has been enriched with oxygen in the lungs and is pumped from the heart through the arteries to nourish the body.