Problem:
Edmund Enterprises recently made a large investment to upgrade its technology. While these improvements won't have much of an effect on performance in the short run, they are expected to reduce future costs significantly.
Question:
Question 1: What effect will this investment have on Edmund Enterprises' earnings per share this year? Show your all work.
Question 2: What effect might this investment have on the company's intrinsic value and stock price? Show your all work.