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Problem 22-07 An investment with total costs of $11,000 will generate total revenues of $12,000 for one year. Use Appendix B to answer the questions.

Problem 22-07

An investment with total costs of $11,000 will generate total revenues of $12,000 for one year. Use Appendix B to answer the questions. Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar.

If funds cost 9 percent, the NPV is $ .

What would be your advice to management?

The investment -Select-shouldshould notItem 2 be made.

Would your answers be different if the cost of capital is 18 percent?

If funds cost 18 percent, the NPV is $ .

The investment -Select-shouldshould notItem 4 be made.

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