1.JERRY sells a share of Kindred short at $6.20 per share, and at some future date covers his short position (gets out of his short position) when Kindred is trading at $3.10. What is his profit or loss on the trade? $ ?Place your answer with dollars and cents without a dollar sign.
2. What is the MOST that JERRY can gain on this short trade? $?
3. A retailer is looking to expand operations at all of their stores for an initial investment of $680. This investment will be depreciated on a straight line basis over the project's 8 year life. The expansion is expected to produce annual cash inflows of $550 in each year over the life of the project, while also producing annual cash outflows of $300 in each year over the life of the project. What is the project's NPV if the corporate tax rate is 34% and the project's required rate of return is 13%?