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

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 cost of capital increased to 25%, does the firm invest in the printer?

a) Yes because the NPV>0

b) Yes because the NPV=0

c) Need information on the marginal benefits and costs

d) No because the NPV<0

please give me the explanation!