You represent Company A, which is considering acquiring Company T. The value of Company T depends on the outcome of a major oil exploration project. If the project fails, Company T under current management will be worth nothing. But if it succeeds, Company T's value under current management could be as high as $500500 per share. All share values between $0 and $500500 are considered equally likely. Company T will be worth much more under the progressive management of Company A than under current management. In fact, whatever the ultimate value under current management, Company T will be worth 2525 percent more under the management of Company A. If the project fails, Company T is worth $0 per share under either management. You must determine what price Company A should offer for Company T's shares. You will not know the results of the exploration project when submitting your price offer, but Company T will know the results when deciding whether to accept your offer. Also, Company T will accept any offer by Company A that is greater than the per-share value of the company under current management. What is your optimal strategy? You (Company A) should offer $nothing per share for Company T's stock. (Enter a numeric response using an integ

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51