Resource Mining Company's (RMC)complex Spews Smoke and Odors

question 6

Essay

Resource Mining Company's (RMC)complex spews smoke and odors.The site features its own rail system,and trucks enter and exit the com?plex night and day.Sam and other residents of an adjacent neighbor?hood can feel the vibrations of the trains and trucks,and suffer other ef?fects from RMC's operations.Sam and others file a suit against RMC.Why might the court rule in favor of RMC?

---

Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, especially as affecting liquidity.

Average Accounting Return

A measure of profitability calculated as the average net income divided by the average book value of investment over a period.

Annual Net Incomes

The total profit of a company after all expenses and taxes have been deducted from revenues for one year.

Salvage Value

The estimate of an asset's worth at the end of its useful life.