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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.
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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 cost of capital decreased to 1%, does the firm invest in the new technology?

User Optionsix
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Yes the firm should the 1 percent decrease of the capital won’t effect too much. So yes.

User Chris Ward
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