1. Based on your current assessment of current international relations in the context of bond yields, where do you think yields may go? How would that impact corporations in the US? What about companies that borrow money abroad (in the bond market)?
2. Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,180,000 in annual sales, with costs of $875,000. If the tax rate is 30 percent, what is the OCF for this project? Find the OCF.