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Use the Following Information to Answer the Next Two Questions

Question 46

Multiple Choice

Use the following information to answer the next two questions:
A publisher is deciding whether to invest in a new printer that needs an initial investment of $500.This will increase cash flows in the first year by $600 for the next two years.
-If the interest rate is 10% then the net present value of these cash flows is


A) $1041.32
B) $541.32
C) $1090.91
D) $590.91

Correct Answer:

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