1. The project is expected to require purchasing long-term assets with an installed cost. The project will be terminated. Selling the assets will result in an after-tax gain. The project is expected to generate annual after-tax operating cash flows for 4 years.
2. What do you believe stock market is regarding the three forms of the efficient markets hypothesis? Justify your position.
3. Is a corporate bankruptcy a legitimate tool to be used by corporate management to enhance the value of the firm? Why do you hold this opinion.