An economic analysis of a proposal to impose a on steel into the united states indicated that the quota would save 3,700 jobs in the steel industry but cost about 35,000 jobs in other u. s. industries. a quota on steel imports would cause employment to fall in other industries because what happens to the costs of producing goods that use steel? source: study cited in douglas a. irwin, free trade under fire, princeton, nj: princeton university press, 2002, p. 82. the quota ▼ raises lowers the costs of producing goods that use steel.

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?