What is the NPV of operations

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Reference no: EM132046390

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

Reference no: EM132046390

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