1. Judy Jack expects to receive $1000 at the end of each year for the next two years. Assuming an annual compound interest rate of 10%, what is the present value of these two annual payments?
A. $1886
B. $1763
C. $1942
D. $1833
2. In year three, Elston LLC had EBIT of 100, taxes of 30% and cash flow of 85. What was depreciation in year three?
A. 15
B. 20
C. 25
D. None of the above
3. The elements needed to calculate cash flow in perpetuity are
A. Relevant cash flow in last year
B. Target's cost of equity
C. Both A and B
D. Target's cost of debit