Use the following information to answer the next two questions:

A manufacturing firm is deciding whether to invest in a new printer that needs an initial investment of $150,000. This will increase cash flows in the first year by $80,000 and $75,000 in the second year.

If the cost of capital decreased to 1%, does the firm invest in the new technology?

a.Yes because the NPV=0

b.Yes because the NPV>0

c.No because the NPV<0

d.Need information on the marginal benefits and costs