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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

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. What is the present value of the cash flows from the investment?

a.

$1100

b.

$541

c.

$600

d.

$1041

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