1. Ebrima Kanteh works as a supervisor for an engineering company in Riyadh, Saudi Arabia. In the UK he had a reputation for speaking his mind and by doing so
getting the best out of his staff. At the current project in Riyadh he supervises 12
British staff and nearly 50 Saudi staff. After a few months Ebrima has become
increasingly frustrated by what he sees a less than effective Saudi team. Their lack
of competence and slow work pace is worrying Ebrima. What should he do to try
and bring the Saudi staff back into line?

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?