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A firm is considering an investment in a new advertising project. The project will produce...

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A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and it will produce a cash flow of $15,000 two years from now. The firm has a required return of 11 %. You are the manager of the advertising department and you estimate that the cost of this project is $13,000 today. Do you recommend that the firm accept this project? OA No, the value of the project today is $12,986, less than the cost of $13,000 today B. Yes, the value of the project today is $13,075, greater than the cost of $13,000 tod ay OC No, the value of the project today is $11,712, less than the cost of $13,000 today OD. Yes, the value of the project today is $14,414, greater than the cost of $13,000 today 4 poin QUESTION 14 Assume that the interest rate is greater than zero. If the interest rate increases, then the present value of a future cash flow of $100 will A Stay the same B. Not enough information to solve OC. Increase D. Decrease

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