Answer:
The lump sum would be $1,000,000.
Explanation:
It would be $1,000,000 without the discount rate, but I don't know how to subtract a discount rate from a number. Sorry.
That statement is true
Even though an electronic cover letter is somewhat informal, the purpose in writing it is to lend you an interview for a Job. So it's still have to follow a business letter format to make you seem more educated
We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.
Lets find the cash flow from not processing further:
42500 pounds Sugar @ $1.43 per Pound $60,775
Lets find the cash flow from Processing Further:
If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)
34000 pounds of refined [email protected] $2.23 per pound $75280
Additional Processing charges for 42500 [email protected]$0.49 ($20825)
Total Cash Flow $54995
As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.
Answer:
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