3. Name an economic cost that is omitted from the

accounting income statements that

should be of interest to management.

4. The ABC Company has to make a choice between two

strategies:

Strategy 1

: Is expected to result in a market price now of $1

00 per share of common

stock and a price of $120 five years from now.

Strategy 2

: Is expected to result in a market price now of $8

0 and a price of $140 five

years from now.

What do you recommend? Assume that all other things

are unaffected by the decision

being considered.