Edgar bronfman, jr., dropped out of high school to go to hollywood and write songs and produce movies. eventually, he left hollywood to work in the family business—the bronfmans owned 36 percent of seagram co., a liquor and beverage conglomerate. promoted to president of the company at the age of 32, bronfman seized a second chance to live his dream. seagram received 70 percent of its earnings from its 24 percent ownership of dupont co. bronfman sold this stock at less than market value to purchase (at an inflated price) 80 percent of mca, a movie and music company that had been a financial disaster for its prior owners. some observers thought bronfman had gone hollywood, others that he had gone crazy. after the deal was announced, the price of seagram shares fell 18 percent. was there anything seagram shareholders could do to prevent what to them was not a dream but a nightmare? apart from legal issues, was bronfman’s decision ethical? what ethical obligations does he owe seagram’s shareholders?

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)