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Inessa05 [86]
2 years ago
7

Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest in

volves $35 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre.If the price at which wheat can be sold is $5 per bushel and if farmers want to earn a normal profit of $10 per acre,What is the most that any farmer would pay to rent your 20 acres? $What if the price of wheat rose to $6 per bushel? $
Business
1 answer:
mars1129 [50]2 years ago
5 0

Answer:

1. The most that the farmer would pay to rent 20 acre is $100.

2. The price of wheat rose to $6 per bushel is $900.

Explanation:

Given the information, we have:

Total cost per acre

= $35 + $80 + $70 = $185

Revenue from wheat per acre

= 40 x $5 = $200

Contribution per acre = $200 - $185 = $15

The most that the farmer would pay to rent 20 acre is

==>20 x ($15 - $10) = $100

If the price of wheat rose to $6, the most that farmer would pay

= 20 x (240 - 185 - 10)

= $900

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Worthington Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash
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Answer:

c. 2.50 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $500

In year 1 = $150

In year 2 = $200

In year 3 = $300

If we sum the first 2 year cash inflows than it would be $350

Now we deduct the $350 from the $500 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $300

So, the payback period equal to

= 2 years + ($150 ÷ $300)

= 2.50 years

In 2.50 yeas, the invested amount is recovered.

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3 years ago
Please help answer economics questions for 100 points and brainliest
MAVERICK [17]

It is c I had this question also

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What does it mean if your net assets increase
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When a company earns income, it becomes larger because net assets have increased. Even if a portion of the profits is later distributed to shareholders as a dividend, the company has grown in size as a result of its own operations.
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Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 p
alexandr402 [8]

Answer:

cost of direct materials purchases   160,800

Explanation:

pounds required for production      54,000

desired ending inventory                    2,800

total needs                                         56,800

beginning inventory                           (3,200)

units to be purchased                        53,600

cost per unit of direct materials                  3

cost of direct materials purchases   160,800

<u>Notes:</u>

The pounds for production and the ending inventory are the raw materials demand.

The beginning inventory is a portion we already have, so we need to purchase less.

Then, we multiply the pounds to be purchased by their cost to get the total cost for direct materials

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2 years ago
Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the
shutvik [7]

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

  • The $286,827 that they receive is the market price/ market value of the bond.
  • The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
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  • The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
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