Edmund Enterprises recently made a large investment to upgrade its technology. Although these improvements won't have much effect on performance in the short run, they are expected to reduce future costs significantly.

What effect will this investment have on Edmund Enterprises' earnings per share this year? What effect might this investment have on the company's intrinsic value and stock price?

INSTRUCTIONS TO COMPLETE DISCUSSION ASSIGNMENT: Discuss the two questions above. When stating your answers, you must provide justification to fully support your statements. Refer to Chapter 1 to help you justify your discussion points.

Your discussion should contain at least 3 paragraphs with 4 or more sentences in each paragraph. You can include calculations if it helps support your points. Construct your written discussion as follows:

Paragraph 1 - Discuss question 1 above.

Paragraph 2 - Discuss question 2 above.

Paragraph 3 - Your opinion stating if you agree or disagree with Edmund Enterprises' decision to implement the improvements.