You are considering an investment with a 3-year time horizon. At
the end of the first year, you expect to receive a cash flow of
$5,000 from this investment. During the remaining two years, the
cash flows are expected to grow by 5% (each year). If your required
rate of return is 10%, what is the present value of this
investment? a) $15,762.50 b) $13,025.92 c) $17,337.50 d)
$12,434.26
Consider the following cash flows. Years: 0 1 2 3 4 CFs: $0 $175
$0 $225 $300 The interest rate is 11%. What is the value of these
cash flows at the end of year 4? a) $849.56 b) $559.63 c) $789.09
d) $519.80
Given below is the most recent income statement of Amante Inc.
(in millions.) Sales 150 Cost of goods sold (70) Other operating
expenses excluding depreciation (45) EBITDA 35 Depreciation (5)
EBIT 30 Interest Charge 4 EBT 26 Taxes (6.5) Net Income 20 How much
is the net operating profit after tax (NOPAT)? a) $23.5 million b)
$26.25 million c) $28.5 million d) $22.5 million
