A publisher is deciding whether or not to invest in a new ...

[melly21297]

A publisher is deciding whether or not to invest in a new printer. The printer would cost 500, and it would increase cash flows by 600 for the next two years. If the cost of capital is 10 then the net present value of the investment is
 a. 1041.32
  b. 541.32
 c. 1090.91
  d. 590.91

Question 2

With no price discrimination,
 a. A firm sells every unit at different prices
 b. A firm sells every unit at same prices
 c. Low-value groups pay a lower price than the high-value groups
  d. Low-value groups pay a higher price than the high-value groups

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Answer to Question 1

b

Answer to Question 2

b