The Montreal Film Festival Company Has a Book Value Per

The Montreal Film Festival Company has a book value per share of $10 and a current return on equity of 7 percent.The firm expects to invest $100 next year and earn a return of 10 percent on that investment.The market requires a rate of return of 5 percent on the firm's equity.The present value of existing opportunities and the present value of growth opportunities are:

A) PVEO = $95.24; PVGO = $14.00
B) PVEO = $14.00; PVGO = $95.24
C) PVEO = $10.00; PVGO = $100.00
D) PVEO = $100.00; PVGO = $10.00