​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:

Toll-free Numbers

Telephone numbers that allow callers to reach businesses or individuals without being charged for the call, often used for customer service or sales.

Lead

A prospective customer who has shown interest in a product or service, potentially leading to a sale.

Qualified Prospect

A potential customer who has been evaluated and deemed likely to purchase a product or service due to their interest, ability to buy, and authority to make the purchase decision.

Cold Call

The practice of contacting potential customers or clients who have not previously expressed interest in the offered products or services, typically via telephone.