1. Why is it important to explain trends in revenue and in net income in a financial analysis? Also, why should you compare numbers over time to competitors? please explain why.
2. Suppose a piece of equipment has a purchase price of $123,456 and can be straight-line depreciated over 5 years. If the tax rate is 30% and the discount rate is 11.5%, how much value does depreciation add to the firm? Calculate your answer to the nearest penny. Please show work.