Alice bought a US treasury bond that matures in 2 years. It is priced at par and has a coupon rate of 8 percent. After he bought it, the Federal Reserve lowered interest rates by 1 percent. If the bond now yields 7 percent (YTM=7 pct), estimate her return Select one: a. A gain greater than 10 percent. b. A loss greater than 10 percent c. A gain between 0 and 10 percent d. A loss between 0 percent and 10 percent Roadrunner Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $3,000,000 The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which it will be worthless. The project is estimated to generate $3,250,000 in sales and $2,250,000 in total costs. The tax rate is 40%. Investments of this risk have a cost of capital of 10%. Calculate the Operating Cash Flow (OCF). Select one: a. More than $1,050,000 b. Less than $750,000 c. $950,000 to $1,050,000 d. $750,000 to $850,000 e. $850,000 to $950,000