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?

a.Yes since NPV>0

b.Yes since the present value of the cash flows is greater than zero

c.No since NPV<0

d.No since the present value of the cash flows is lesser than zero