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

The constant chain of replacement and the EAV methods will give identical accept/reject signals if:

Select one:

a.the projects have the same lives

b.the projects have the same required rates or return

c.the projects have the same net present value

d.all of the given options

The constant chain of replacement and the EAV methods will give identical accept/reject signals if:

Select one:

a.the projects have the same lives

b.the projects have the same required rates or return

c.the projects have the same net present value

d.all of the given options