Suppose that we are drilling an oil well. The drilling rig costs $1800 today, and in one year the well is either a success or a failure. The outcomes are equally likely. The discount rate is 3%. The PV of the successful payoff at time one is $3100. The PV of the unsuccessful payoff at time one is $0. Now, we know that the rig can be sold for $2900 in a year. When we include the value of the option to abandon, the NPV of this drilling project should be (keep two decimal places): ____________
Answers
The NPV of this drilling project, including the value of the option to abandon, is $4035.95.
To calculate the net present value (NPV) of the drilling project, we need to consider the present value of the cash flows associated with both the successful and unsuccessful outcomes.
For the successful outcome, the present value (PV) of the payoff at time one is given as $3100. Since the discount rate is 3% and the time horizon is one year, the present value can be calculated as $3100 / (1 + 0.03) = $3019.42.
For the unsuccessful outcome, the PV of the payoff at time one is $0.
Next, we consider the value of the option to abandon. This option allows us to sell the drilling rig for $2900 in a year. Since we have the option to abandon the project, the value of this option is equal to the proceeds from selling the rig, discounted back to the present. Therefore, the PV of the option to abandon is $2900 / (1 + 0.03) = $2815.53.
Finally, we can calculate the NPV by subtracting the initial cost of the drilling rig ($1800) from the sum of the PVs of the successful payoff, unsuccessful payoff, and the option to abandon: $3019.42 + $0 + $2815.53 - $1800 = $4035.95.
Therefore, the NPV of this drilling project, including the value of the option to abandon, is $4035.95.
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Related Questions
if the absolute value of the tax elasticity of supply is 2.3, a tax cut of 2 percent should cause output supplied to
Answers
A tax cut of 2 percent is expected to result in a decrease in the quantity of output supplied by approximately 0.046%.
Understanding the concept of tax elasticity of supply is crucial in economics. It helps us analyze how changes in taxes affect the quantity of goods or services supplied in the market. In this case, we'll discuss the effect of a tax cut on the output supplied when the tax elasticity of supply is given as 2.3.
The tax elasticity of supply measures the responsiveness of the quantity of output supplied to changes in tax rates. It is calculated by dividing the percentage change in quantity supplied by the percentage change in the tax rate.
Let's assume the initial tax rate is denoted by "T" and the initial quantity of output supplied is denoted by "Q." The tax elasticity of supply (ε) is given as 2.3, which implies that for a 1% change in the tax rate, the quantity of output supplied changes by 2.3%.
Now, we are considering a tax cut of 2 percent. This means the new tax rate (T') will be T - 2%. To determine the effect of this tax cut on the quantity of output supplied, we can use the concept of tax elasticity of supply.
The formula to calculate the percentage change in the quantity of output supplied is:
Percentage change in quantity supplied = ε * Percentage change in tax rate
Substituting the given values into the formula, we have:
Percentage change in quantity supplied = 2.3 * (-2%)
To simplify the calculation, let's convert the percentage change in tax rate to a decimal:
Percentage change in tax rate
= -2%
= -0.02
Now, we can calculate the percentage change in quantity supplied:
Percentage change in quantity supplied
= 2.3 * (-0.02)
= -0.046
Therefore, a tax cut of 2 percent is expected to result in a decrease in the quantity of output supplied by approximately 0.046%. It's important to note that the negative sign indicates a decrease in supply due to the tax cut.
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how to right a conclusion for human resources
Answers
Answer:
The conclusion should state once again the problems and solutions that you have arrived at during your research. Learning how to write a human resources essay requires you to be keen on making a good summary of the interpretations and observations described in the main body of the paper.
Explanation:
Hope this helps
Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.
Answers
($14)(25)=$350
($25)(11)=$275
$350+$275= $625
if an ice cream company decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in the organization, during which phase of the strategic marketing planning process should the firm incorporate ethical considerations?
Answers
In the strategic marketing planning process, ethical considerations should be incorporated during the strategy formulation phase.
This is the stage where the firm identifies its goals and objectives, assesses its internal and external environment, and determines its overall approach to the market. During this phase, the firm should take into account the ethical implications of its marketing activities and consider the impact that its decisions will have on various stakeholders, including customers, employees, suppliers, and society as a whole. For example, if the ice cream company wants to establish a strong ethical climate, it should consider ethical issues such as fair labor practices, environmentally sustainable sourcing of ingredients, and responsible advertising practices. By incorporating these considerations into its marketing strategy, the firm can ensure that it operates in an ethical and socially responsible manner while still achieving its business objectives.
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How is a debit card different from a credit card?
A. A debit card is usually issued by a financial institution.
B. A debit card provides a way for people to make large purchases.
C. Spending on a debit card is limited to the funds available in an
account.
D. Spending can occur via a digital payment method.
Answers
Answer:
C
Explanation:
because thats wat ist is.- limited funds
Why should businesses be socially responsible? Give any two reasons.
Answers
Answer:
Embracing CSR increases customer retention and loyalty, increases employee engagement, improves brand imaging, attracts investment opportunities and top talent, and makes a difference for bottom-line financials.
Explanation:
Yeah.
Which strategy best helps a famous brand company reach consumers?
selling at trade shows
sending out mailings in small towns
advertising nationally
marketing selectively
Answers
Answer:
C.) advertising nationally
Explanation:
This is the correct answer. The person above may only have a 3-star rating, but they are correct.
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Hi-V produces three types of canned juice drinks, A, B, and C, using fresh strawberries, grapes, and apples. The daily supply is limited to 200 tons of strawberries, 90 tons of grapes, and 150 tons of apples. The cost per ton of strawberries, grapes, and apples is $210,$110, and $100, respectively. Each ton makes 1500lb of strawberry juice, 1200lb of grape juice, and 1000lb of apple juice. Drink A is a 1:1 mix of strawberry and apple juice. Drink B is 1:1:2 mix of strawberry, grape, and apple juice. Drink C is a 2:3 mix of grape and apple juice. All drinks are canned in 16 -oz ( 1lb) cans. The price per can is $1.15,$1.25, and $1.20 for drinks A, B, and C. Develop an LP model to determine the optimal production mix of the three drinks. (only the formulation is required)
Answers
The LP model aims to determine the optimal production mix of drinks A, B, and C using limited supplies of strawberries, grapes, and apples. The objective is to maximize profit while considering the cost of ingredients and the can price per drink.
Let:
x1 = number of cans of Drink A produced
x2 = number of cans of Drink B produced
x3 = number of cans of Drink C produced
The objective is to maximize the profit, which is given by the equation:
Maximize: 1.15x1 + 1.25x2 + 1.20x3
Subject to the following constraints:
Strawberry constraint: 1500lb * x1 + 1500lb * x2 <= 200 tons (converted to lb)
Grape constraint: 1200lb * x2 + 1200lb * x3 <= 90 tons (converted to lb)
Apple constraint: 1000lb * x1 + 1000lb * x2 + 1000lb * x3 <= 150 tons (converted to lb)
Non-negativity constraints:
x1 >= 0, x2 >= 0, x3 >= 0
The LP model aims to maximize the profit by determining the optimal values of x1, x2, and x3 while considering the constraints imposed by the availability of strawberries, grapes, and apples.
The objective function represents the total profit obtained from the production and sale of the drinks, and the constraints ensure that the ingredient usage does not exceed the available supply.
Non-negativity constraints ensure that the production quantities cannot be negative.
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what is its wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Answers
The WACC is Mercy and Co inc. equals to 8.1%
What Is Weighted Average Cost of Capital (WACC)?A company's cost of capital is represented by its weighted average cost of capital (WACC), which assigns a weight to each category of capital. WACC are used as a benchmark rate by businesses and investors to determine the viability of a certain project or purchase.
The computation of the firm's weighted average cost of capital goes as follows:
= Weight of debt*after tax cost of debt + weight of equity*cost of equity + weight of preferred stock*cost of preferred stock
= 0.888*0.089 + 0.112*0.019 + 0*0
= 0.079032 + 0.002128 + 0
= 0.081
= 8.1%
Note: The missing question is attached as picture.
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outline 2 advantages to H&H of using secondary market research
Answers
Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable
View Policies Current Attempt in Progress Monity Corp's gross payroll for April is $48,800. The company deducted $2.292 for CPP. $973 for El, and $9,111 for income taxes from the employees cheques. Employees are paid monthly at the end of each month. Prepare a journal entry for Monty on April 30 to record the payment of the April payroll to employees. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit Apr. 30 > B Question 7 of 8 -/15 E I Prepare a journal entry on April 30 to accrue Monty's employer payroll costs. Assume that Monty is assessed workers compensation premiums at a rate of 1% per month and accrues for vacation pay at a rate of 4% per month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round answers to 0 decimal places, eg 5,276)
Answers
April 30, 20XX
Account Debit Credit
----------------------------------------------------
Salaries Expense $48,800 -
CPP Payable - $2,292
EI Payable - $973
Income Tax Payable - $9,111
Cash - $36,424
Explanation:
To record the payment of the April payroll to employees, the following journal entry is made:
1. Debit Salaries Expense for the total gross payroll amount of $48,800. This recognizes the expense incurred for employee salaries.
2. Credit CPP Payable for the amount withheld for Canada Pension Plan (CPP), which is $2,292. This liability represents the amount deducted from employees' paychecks for CPP contributions.
3. Credit EI Payable for the amount withheld for Employment Insurance (EI), which is $973. This liability represents the amount deducted from employees' paychecks for EI contributions.
4. Credit Income Tax Payable for the amount withheld for income taxes, which is $9,111. This liability represents the amount deducted from employees' paychecks for income tax withholding.
5. Credit Cash for the net amount paid to employees, which is calculated by subtracting the total deductions ($2,292 + $973 + $9,111 = $12,376) from the gross payroll ($48,800 - $12,376 = $36,424). This entry reflects the actual cash outflow to employees for their salaries after deducting the required contributions and taxes.
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When eaton worked with the university of notre dame on its new engineering building to improve its energy efficiency and earn leed credits, both actors were working together for the first time. Therefore, the university’s buying situation can be classified as a ________.
Answers
When Eaton worked with the university of Notre dame on its new engineering building to improve its energy efficiency and earn leed credits, both actors were working together for the first time. Therefore, the university’s buying situation can be classified as a derived demand.
Notre Dame could be a good place to figure for. They need great benefits. lots of job opportunities for anyone with no experience. Appreciate the love and support they offer back to the staff. 81% of job seekers rate their interview experience at University of Notre Dame as positive.
Candidates give a median difficulty score of two.5 out of 5 (where 5 is that the highest level of difficulty) for his or her interview at University of Notre Dame. The University of Notre Dame is the nation's leading Catholic research university, providing a particular voice in instruction that's directly rigorously intellectual, unapologetically moral in orientation, and firmly embracing a service ethos.
The University of Notre Dame, having high acceptance rates and graduation rates, high rankings and lots of prestigious alumni remains NOT a league school. The league schools are a consortium of eight private universities based within the northeast region of the US. The academics at Notre Dame are very tough, especially within the engineering and science fields.
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perfectly competitive market in long run equilibrium. if demand decreases, we can be certain that price will
Answers
Answer:
fall in the short run. all, some, or no firms will shut down, and some of them will exit the industry. price will then rise to reach the new long-run
Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect
Select one:
O a. both the unemployment rate and the inflation rate.
Ob.
O c.
the unemployment rate but not the inflation rate.
the inflation rate but not the unemployment rate.
neither the inflation rate nor the unemployment rate.
Od
Answers
Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect "neither the inflation rate nor the unemployment rate". The correct option is D.
The growth rate of the money supply by the central bank is not expected to have an immediate impact on either the unemployment rate or the inflation rate.
But changes in the money supply usually take time to affect the broader economy. In the short run, other factors such as market conditions are likely to have a more significant influence on the unemployment rate and the inflation rate.
Therefore, the correct option is D.
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How can an employer avoid legal challenges arising against the use of screening procedure?
give 6/7 points and ans it asap.
Answers
An employer can avoid legal challenges arising against the use of screening procedures by following the below steps:
1. Follow the law: The employer should always adhere to the laws that apply to the hiring process. This includes following the guidelines set by the Equal Employment Opportunity Commission (EEOC) and other relevant regulations.
2. Use validated screening procedures: The employer should use validated screening procedures that have been shown to be reliable and valid. This will help ensure that the screening process is fair and does not discriminate against any particular group of people.
3. Be consistent: The employer should be consistent in how they use screening procedures. This means applying the same screening procedures to all applicants for a particular job.
4. Be transparent: The employer should be transparent about the screening procedures they use. This means informing applicants about the screening procedures and how they will be used in the hiring process.
5. Avoid using irrelevant information: The employer should avoid using information that is not relevant to the job in the screening process. This includes information such as an applicant's race, religion, or marital status.
6. Train HR staff: The employer should train HR staff on how to use screening procedures in a way that is fair and legal. This will help ensure that the screening process is carried out properly and that legal challenges are avoided.
7. Keep records: The employer should keep records of the screening process, including the screening procedures used and the results of the screening. This will help the employer defend against any legal challenges that may arise.
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Formula one’s growth in the u. S. Became clear last year as circuit of the americas was preparing to host a record crowd in austin. F1 could make an announcement of a media rights extension with which entity?.
Answers
Bobby Epstein, chairman of COTA, predicts that the track will receive well over 400,000 people over the duration of the three-day weekend starting on October 21 and break its own attendance record with the F1 Aramco U.S. Grand Prix.
The surrounding infrastructure and logistics of the arena have been enhanced by COTA and the city of Austin to lessen the prolonged wait periods for services like fan shuttles that were encountered last year.
Austin will lack some of the normal F1 drama even though COTA is the fourth-to-last race of the year because Red Bull Racing driver Max Verstappen easily romped to his second title this year. As a result, the race for the championship is over. Epstein believes that despite the lack of tension on the track, the event will be a success.
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After a bank reconciliation has been completed these transactions are listed as ____ to the cash balance? ? need help taking A p e x quiz now!!! don't have time to be chasing a link!
A. Journal entries
B. Credits
C. Adjustments
D. debits
Answers
Answer:
A
Explanation:
After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.
Once the balances are equal, businesses need to prepare journal entries for the adjustments to the balance per books.
Answer:The answer is C
Explanation:
Just took the test
Which best describes a way people can use personal loans? to buy a house to buy a bicycle to pay for college to pay for groceries
Answers
Answer:
c. to pay for college
Explanation:
just took the test
Answer:
C. to pay for college
Explanation:
The intended audience for your résumé is a potential employer.
False
True
Answers
Answer:
True
Explanation:
False, it’s actually not just for hiring a potential employee, but its audience is ‘hiring a manager or recruiter.’ The recruiter works for the employee, and yet the manager is somewhat of a higher rank.
) Outline two ways VKW might be affected by increased import controls.
Answers
Answer:
see below
Explanation:
Increased import control tends to increase the cost of imports. For a business that depends on imports for its raw materials, increased control will have the following effects.
Can delay or halt production. Increase import control may affect the cost of imports and the quantity of material or parts imported. VKW may be unable to import all the materials it requires for production. This may force it to slow down production before it can get alternative suppliers. Increase in product prices: Imports control might include a rise in import tariff making imports expensive. VKW is likely to increase the price of its products to maintain its profitability.by means of the internet search for an employment test that may be used in companies for selection purposes give the name of at least two companies and describe how their tests are conducted.
help mga mare
Answers
Answer:
The two companies are:
1. Mercer
2. Aen
Explanation:
1. The name of the tests. The tests are administered online https://www.practiceaptitudetests.com/top-employer-profiles/mercer-assessments/. There are four categories:
The various categories of tests are:
Numerical Verbal Logical SituationalPublisher2. Adaptive Employee Personality Test (ADEPT-15®)
This is also administered online at https://www.asia.aonhumancapital.com/home/for-employers/people-and-performance/employee-assessment-and-selection/adaptive-employee-personality-test
This one is more personality inclined. It is for determining employees who are culture fit.
Cheers
630-689
Fair
690-719
Good
300-629
Bad
720-850
Excellent
Which of the following is most likely true for a person with a credit score of 600?
A) That person will find it easy to get a loan
B) That person will find it difficult to get a loan
C) That person's loan will likely have high interest rates
D) That person will probably not have to make very high monthly payments
Answers
Answer:
b
Explanation:
our score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
Crane Company issues $2.2 million, 20-year, 9% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount.
Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answers
The journal entry to record the sale of the bonds on January 1, 2022 would be as follows: Date: Company January 1, 2022 Debit: Cash ($2,178,000) Debit:
Discount on Bonds Payable $22,000 Credit: Bonds Payable ($2,200,000) Explanation: Cash is debited for the amount received from the sale of the bonds, which is $2,178,000. This amount is calculated by multiplying the face value of the bonds ($2,200,000) by the issue price (99%). Discount on Bonds Payable is debited for the bond discount, which is $22,000. This is the difference between the face value of the bonds and the amount received from the sale. Bonds Payable is credited for the face value of the bonds, which is $2,200,000. Prepare This represents the liability created by issuing the bonds. Note: The bond discount of $22,000 will be amortized over the term of the bond using the straight-line method. The amortization will be recorded through periodic adjusting entries.
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Through the use of artificial intelligence, firms monitor the price elasticity of demand, which measures the
a) pricing of competitor’s products.
b) time it will take a firm to earn back its product-related costs.
c) market’s response to a change in price.
d) consistency of a firm’s pricing strategy.
e) point-of-sale data and whether specific objectives are being met.
Answers
Through the use of artificial intelligence, firms are able to monitor the price elasticity of demand, which is a measure of the market's response to a change in price.
This means that AI technology can help firms determine the optimal price point for their products based on customer demand and behavior. By analyzing point-of-sale data and tracking whether specific objectives are being met, AI can provide valuable insights into pricing strategies that may not have been possible with traditional methods. This allows firms to adjust prices quickly and efficiently in response to market changes and stay competitive with pricing of their products. Therefore, the correct answer to the question is (c) market's response to a change in price.
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when consumed, many goods and services have an impact on other people not using the product. Which word describes this impact ?
A. appreciation
B. depreciation
C. externality
D. inflation
Answers
Answer:
Explanation:
depreciation
When consumed, many goods and services have an impact on other people not using the product. Depreciation word describes this impact. The correct option is B.
What does it mean to deprecate a product?Application developers who have already subscribed to a product may still use it after it is deprecated, but no new developers may do so. We disapprove of this use of company funds for political activities. to say that you disapprove of something.
In order to maintain backward compatibility and give programmers time to bring affected code into compliance with the new standard, features are deprecated rather than immediately removed. The following are some of the primary causes of depreciation: A more potent substitute feature has taken the place of the former feature.
Thus, the ideal selection is option B.
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(Economics) This list describes recent events in a country. As you read the list, think about the role of the country’s central bank. The country has seen its GDP decline and unemployment rise for three consecutive quarters. People are buying fewer cars, homes, and other goods and services. One reason people are buying less is that it is more difficult and more expensive to get loans to buy large items. The country’s central bank decides to lower the interest rate on the loans it makes to the banks that people use. Banks lower their interest rates. More people take out loans. With their loans, people start buying more goods and services, especially more expensive items such as cars. Producers require more workers to make these goods and sell them. Unemployment drops, and GDP begins to rise. What action helped unemployment and GDP in this country? Justify your response.
Answers
Answer:
The central bank lowered its interest rates, which made it easier and cheaper for banks to make loans to people. once people could get loans, they could buy more. The increased demand meant more people were employed to make and sell items, and output increased.
Explanation:
Answer:
The central bank lowered its interest rates, which made it easier and cheaper for banks to make loans to people. Once people could get loans, they could buy more. The increased demand meant more people were employed to make and sell items, and output increased.
Explanation: edmentum sample answer
PLEASE ive been asking for days i need help with this i don't understand it
you can ignore #5-- i just don't understand #6
Answers
Answer:
$47
Explanation:
Because she can afford the 144 bushel plan, in the long run it is cheaper per bushel so you would choose to market that one to her because it is cheaper in the long run for as well as she grows more bushels.
A personal finance measure that compares an individual's monthly debt payment to his or
her monthly gross income.
O Debt-to-Income Ratio
O Credit Score
O Down Payment
O FHA
Please help
Answers
Answer:
a
Explanation:
how much you make verses how much you soend
Margarita, age 30, used to work 80 hours a week as a corporate lawyer. this year she quit her job to take care of her five-month-old daughter. she is currently not looking for a job. the survey conducted by the bureau of labor statistics will count margarita today as choose one:
a. not in the labor force.
b. not in the working-age population.
c. a discouraged worker.
d. employed.
e. unemployed.
Answers
Answer: a) Not in the labor force
Explanation:
The category of people not in the labour force are those who either have no interest in working for someone, have retired, or has resigned(with no intentions to work for anyone). This category of persons have no interest in taking up job positions as they want to either rest, face another aspect of their life or can't work again due to their age. Margarita is in the category of those not in the labour force as she looks towards taking care of her daughter and won't be in for any job at the moment.
_____ are sources of internal secondary data.A. US government documents. B. articles on Lexis/Nexis C. marketing blogs. D. sales invoices.E. newspaper
Answers
Internal secondary data sources include sales invoices. Here option D is the correct answer.
Sales invoices: These documents provide information about the sales of products or services, including the date of sale, the customer, the amount sold, and the price.
Customer databases: These databases contain information about customers, such as their contact information, purchase history, and preferences.
Employee records: These records provide information about employees, such as their job titles, salaries, and performance evaluations.
Financial records: These records provide information about the financial performance of the company, including its revenue, expenses, and profits.
Inventory records: These records provide information about the company's inventory levels, including the quantity and value of items in stock.
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