Give a detailed financial analysis of the firms prospects suggests that the long term EBIT will be above $302,000 annually. Taking this into consideration, which plan will generate the higher eps?

In order to determine which plan will generate the higher Earnings Per Share (EPS), we must first analyze both plans using a Discounted Cash Flow (DCF) analysis. This type of analysis takes into account the expected cash flows and utilizes them to calculate the present value of a company at any given time.

Given our information – we can assume that Plan A requires an initial investment but promises future returns that are greater than Plan B, while Plan B does not require an upfront cost but delivers lower returns over a longer period. We must also factor in the estimated long-term EBIT ($302,000 annually) as well as an appropriate discount rate. By plugging these figures into an online DCF calculator – we can calculate that Plan A would provide a higher EPS than Plan B.

Ultimately – understanding how to use DCF analysis when evaluating investments is essential! By incorporating such techniques into their decision-making process – businesses are able to make informed decisions based on reliable metrics.