Seven years ago, after 13 years as a CPA at a successful CPA, you opened up a managerial accounting firm specializing in cash flow analysis, including tax implications facing firms in the Coastal Bend area of Texas. Carlos Ruiz, founder of Ruiz & Anderson Valves, Incorporated (which uses the acronym RAVI, which translates to "sun" in Sanskrit ), recently approached your firm requesting a multi-layered analysis of RAVI. RAVI is a full-service manufacturer of high-pressure valves used in the energy industry. It is a closely held, public firm. Mr. Ruiz has asked you to analyze RAVI's financial statements, investment options, and the impact of a given decision on its value. Project examination will be from the perspective of choosing between completing mutually-exclusive options and the impact on firm value arising from accepting a second project that is being championed by some at RAVI.

Income Statement Year Ending December 31, 2023
Sales Revenue		$6,075,000
Less: Cost of Goods Sold		-4,000,200
Gross Profit		$2,074,800
Less: Operating Expenses
Selling Expense	$650,000
General and Administrative	$326,000
Lease payments	$ 50,000
Depreciation	$152,000
Total Operating Expenses		$1,178,000
Operating Profit		$ 896,800
Less: Interest Expenses		- 99,500
Net profit before taxes		$ 797,300
Less: Taxes		$ 318,920
Net Profit after taxes		$ 478,380
Earnings per share: $4.78 Dividends per share: $4.60