Capital Budgeting (NPV) Year Cash Flows -5,575 1,595 1,653 1,773 2,120 AWN- Currently, the investor's required rate of return 5.2% Please compute the project's NPV (hint: it is positive). What if interest rates in the broad economy went up, and also the firm became riskier? Investors would require a higher rate of return. 1. Suppose the required rate increases 2%. How much would the NPV drop? A Between 200 and 270 B Between 270 and 280 C Between 280 and 290 D Between 290 and 300