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Company A want to estimate future earnings, the following data are available from Company B: net income in year 1: 5000 JD, year 2: 8000
Company A want to estimate future earnings, the following data are available from Company B: net income in year 1: 5000 JD, year 2: 8000 JD. Assets include: equipment with FV 10% higher than book value, building with FV 5% lower than book value, patents with 8% higher than book value, discontinued loss 1000 (year 2), extraordinary gain 800 (year 1), equipment depreciation (each year) 10000 JD, building depreciation (each year) 5000 JD, patent amortization (each year) 8000 JD, rent exp. 2200 JD (each year). Compute future earnings
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