Question: Please use the following information to answer the next question. For DD Incorporated: Cash flows from assets = 300 dollars EBIT (from 1999 INCOME STATEMENT)

Please use the following information to answer the next question.

For DD Incorporated:

Cash flows from assets = 300 dollars

EBIT (from 1999 INCOME STATEMENT) = 100 dollars

depreciation expense (from 1999 INCOME STATEMENT ) = 20 dollars

taxes (from 1999 INCOME STATEMENT ) = 40

net fixed assets from BALANCE SHEET dated December 31, 1998 = 1400 dollars

net fixed assets from BALANCE SHEET dated December 31, 1999 = 1160 dollars

Additions to (Changes in) NWC for 1999 = 0 dollars

For EE Incorporated:

Cash flows from assets = 300 dollars

EBIT (from 1999 INCOME STATEMENT) = 40 dollars

depreciation expense (from 1999 INCOME STATEMENT ) = 0 dollars

taxes (from 1999 INCOME STATEMENT ) = 20

net fixed assets from BALANCE SHEET dated December 31, 1998 = 1400 dollars

net fixed assets from BALANCE SHEET dated December 31, 1999 = 1120 dollars

Additions to (Changes in) NWC for 1999 = 0 dollars

For FF Incorporated:

Cash flows from assets = 300 dollars

EBIT (from 1999 INCOME STATEMENT) = 300 dollars

depreciation expense (from 1999 INCOME STATEMENT ) = 40 dollars

taxes (from 1999 INCOME STATEMENT ) = 40

net fixed assets from BALANCE SHEET dated December 31, 1998 = 1400 dollars

net fixed assets from BALANCE SHEET dated December 31, 1999 = 1360 dollars

Additions to (Changes in) NWC for 1999 = 0 dollars

Based only on the numbers provided, which company is doing the best ? In other words, if you were an individual investor, in which company would you invest?

A. DD INCORPORATED

B. EE INCORPORTATED.

C. FF INCORPORATED

D. You are indifferent between EE INCORPORATED and FF INCORPORATED

E. You are indifferent amongst DD INCORPORATED, EE INCORPORTATED, and FF INCORPORATED because Cash flows from assets is 300 dollars for all three

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