Maria works for a large, local company. she is an administrative assistant to the director of the Human Resources Department, the person who hires new employees. Many people come into her office every week. she loves her work and really admires the director. Recently, several men and women have come into the office and interviewed for an area sales manager position. One of the men who interviewed for the position was a person whom she knew when she worked for another company. Unfortunately, she knows that this man was fired because he provided false information to make himself and others within his district look good. Required:
If you were in Maria’s position, what would you do? Would you tell the director, or would you not get involved?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?