**
Fill This Form To Receive Instant Help**

Homework answers / question archive / If an investment costing $2,000 is expected to generate real cash flows of $900 p

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