1. First define HOW managers measure the value of a firm, define the goal of financial management, then discuss WHAT they can do to increase value: Be specific and comprehensive
2. A company has new equipment costs of $2 million, which will be depreciated to zero using straight-line depreciation over 10 years. The company expects to bring in revenues of $5 million per year for 10 years with production costs of $1.5 million per year. If the company's tax rate is 44%, what are the incremental earnings (not cash flows) of this project in years 1-10? Enter your answer in dollars and round to the nearest dollar.