Fast Cars has a return on equity of 22.3 percent, a profit margin of 14.2 percent, and total equity of $467,000. What is the net income?

A new roof costs $10,000. Assume that the value of the roof depreciates 5% per year. If your roof is destroyed by fire after five years, then

A) actual cash value is $7,500 and replacement cost is $10,000. B) actual cash value and replacement cost are $7,500. C) actual cash value and replacement cost are $10,000. D) actual cash value is $7,500 and replacement cost is $2,500.

Real option analysis treats cash flows in terms of future value in a positive sense, whereas DCF treats future cash flows negatively

Indicate whether the statement is true or false.