Use the following information to answer the next two questions. A manufacturing firm is deciding whether to

Question:

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 decreased to 1%, does the firm invest in the new technology?
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
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...