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If an investment costing $2,000 is expected to generate real cash flows of $900 p

Business Sep 21, 2020

If an investment costing $2,000 is expected to generate real cash flows of $900 p.a. for three years, prices are expected to increase at a rate of 10% p.a., and the nominal rate of return is 15%, what is the net present value of the investment?
Select one:
a. $520.59
b. $740.79
c. $471.97
d. $389.79


Pollack Ltd had 10 million shares outstanding at the end of 2015. The company's earnings before interest and tax, at the end of 2015, were $50 million. The company had to pay interest of $15 million and corporate tax of $7 million (20% corporate tax rate). What was EPS (earnings per share) of the company at the end of the year 2015?
Select one:
a. $5
b. $4.50
c. $1.18
d. $2.80

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