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BigorU [14]
3 years ago
6

Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden

metal. The initial purchase of the land and the associated costs of opening up mining operations will cost​ $100 million today. The mine is expected to generate​ $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend​ $20 million to restore the land to its original pristine nature appearance. The payback period for Rearden's mining operation is closest to:
(A) 5.00 years
(B) 6.00 years
(C) 6.25 years
(D) 6.50 years
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The initial purchase of the land and the associated costs of opening up mining operations will cost​ $100 million today. The mine is expected to generate​ $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend​ $20 million to restore the land to its original pristine nature appearance.

We need to sum each cash flow until the total initial investment is paid:

Number of years= 100,000,000/16,000,000= 6.25 years

To be exact:

0.25*365= 95 days

It will take 6 years and 95 days to recover the initial investment.

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Tools for a company’s survival include adaptability and flexibility. Bill Ford’s decision to willingly step down as CEO and admi
Katyanochek1 [597]

Answer: Reactive change

Explanation:

 The reactive change is one of the type of concept that is specifically implemented in an organization by essential changing made in the system without any delay.

 In this type of changes, the changes are made by the outside forces in an organization and with the helps of this change the companies basically interesting the various types of policies for the flexibility of the employees.

According to the given question, the Given example is best illustrating the reactive change concept as it is necessary for the employees of the company. Therefore, reactive change is the correct answer.  

7 0
3 years ago
A department adds raw materials to a Process at the beginning of the process and incurs conversion costs uniformly throughout th
Natasha_Volkova [10]

Answer: c. 78,000 equivalent units.

Explanation:

Equivalent units for conversion is calculated as:

= Units completed and transferred out + Equivalent ending work in process

Units completed and transferred out:

= Units started into production - Ending units

= 90,000 - 20,000

= 70,000 units

Equivalent ending work in process = 40% * 20,000 work in process units

= 8,000 units

Equivalent units for conversion = 70,000 + 8,000

= 78,000 units

7 0
3 years ago
When the Lego Movie was released to movie​ theaters, the intent was not necessarily to sell more​ Legos, but the firm did ha
Harman [31]

Answer:

The correct answer is the option B: branded.

Explanation:

To begin with, the term of <em>branded content</em>, in the field of marketing, refers to the practice that focuses in the creation of multimedia content that is funded or outright produced by and advertiser and whose main purpose is to give a message of the values of the company in the content created.

Secondly, the case of Lego is an example of branded content due to the fact that the company did not want to sell more products but instead <u>wanted to create a content that shows the values of the company such as imagination, being oneself and having fun</u>.

3 0
3 years ago
Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.
dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0
3 years ago
Initially, you produce 100 boxes of jelly beans per time period. Then a new customer calls and places an additional order for je
erastova [34]

Answer:

You should produce as long as the marginal cost per additional box is lower than the marginal revenue obtained by the additional box.

In other words, if the marginal cost of producing the 101th box is lower than $1.75, then, you should continue to produce, because revenue will be higher than cost, and a profit will be made as a result.

5 0
3 years ago
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