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 rises to 25% would the investment still take place? O a ) No since the present value of the cash flows is lesser than zero O b) Yes since NPV>0 c) Yes since the present value of the cash flows is greater than zero O d) No since NPVMC, then the firm should O a ) produce more O b ) the company is maximizing profit at this output ( c) prod producing less O d) None of the aboveFor a restaurant, all the following are fixed costs, except a) Space rental b) Advertising O C) Raw material cost O d) d) All of the above-they are all variable costsThe purchasing power parity predicts that if the price level in the US falls relative to Mexico. ( a) The dollar will appreciate relative to the peso O b) There is no effect on either currency O c) The dollar will depreciate relative to the peso O d) PPP predicts price level will normalize in the long-runA market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: 515. 514. $13. $12. $11. $10. $9. $8. $7. $6. $5. Eleven sellers are also willing to sell at the same prices. 1What is the equilibrium price in the market without the market maker :\"--" a} 512 in} '3) $10 :~.___.' C) $9 lib-'1 C\" 511