Q14 Capital Budgeting NPV Capital Budgeting (NPV) Year O 1 2 3 4 Cash Flows -5.969 1.516 1,656 1,738 2.094 Currently, the investor's required rate of retum 4.7% 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