A firm estimates that it will receive cash flows from a new product of $1,000 in Year 1, $800 in Year 2, and $700 in Year 3. If a discount rate of 9% is assumed, into what range below will the NPV be?

a. Less than $2500
b. Between $2500 and $2800
c. Between $2800 and $3100
d. More than $3100


a. Less than $2500

Business

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