Week 4 Questions

1. Typical Investment for DuPont (DD)

• Does your rm take a few investments each year, or several (Check Annual Report & Capital Spending)?
• Do these investments have much in common?
• If so, what do they have in common, and what are the differences between them?

2. Earnings and Cash Flows

• What is the typical life of an investment made by your rm?
• What is the pattern of earnings on such an investment?
• What is the pattern of cash ows on such an investment?
• Based upon the companys aggregate numbers, can you estimate the earnings and cash ows on a hypothetical investment?