You are evaluating the firm's financial performance based on the following data.
Balance sheet items:
Marketable securities=300
Non-operating long-term assets =400
Cash=100
Accounts receivable=600
Inventory=1,000
Operating long-term assets (net of depreciation) = 13,800
Accounts payable=880
Accrued taxes=200
Short-term debt=120
Long-term debt=5,000
(1,000 par value, 5 bonds)
Equity=10,000
(10 book value per share, 1,000 shares)
Market values:
Market value of the marketable securities =400
Market value of non-operating long-term assets =500
Market value of short-term debt: 120
Common stock:
Market price per share: 12.00
Long-term bonds:
Market price per bond: 1,000
What is the NPV of operations?
a. $1,880
b. $1,750
c. $1,800
d. $1,920