1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oxana [17]
3 years ago
9

Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Mont

ana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project.MMC has a credit-adjusted risk free interest rate is 7%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows:Cash Outflow Probability$ 10 million 60 %$ 30 million 40 %The asset retirement obligation that should be recognized by MMC at the beginning of the extraction activities is: ______
Business
1 answer:
algol [13]3 years ago
8 0

Answer:

The beginning of the extraction activities is 14.7 million.

Explanation:

Please find the detailed answer as follows:

Present Value of Cash Flows Expected From the Project/Asset Retirement Obligation at the Beginning = (.60*10 + .40*30)*PVIF(7%,3 Years) = (.60*10 + .40*30)*.81630 = 14.7 million .

You might be interested in
Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her ski
katen-ka-za [31]

Answer:

a. Jenna and Mary are both frictionally unemployed.

Explanation:

Frictional unemployment is short-term in nature and arises as workers search for their first jobs or are moving between jobs.  An example of frictional unemployment is a fresh graduate searching for their first employment. Frictional unemployment is the natural unemployment in the economy. It is caused by factors that lead to economic under-performance.

Shifts in the economy cause structural unemployment. It occurs when the skills available are not suited for the current job openings. Jenna and Mary have not been affected by changes in the economy.  Their unemployment is natural and temporally.

7 0
3 years ago
At a growth (interest) rate of 8 percent annually, how long will it take for a sum to double? To triple? Use Appendix A for an a
Yanka [14]

Answer:

n =   ㏒ P ÷ ㏒ (1.08)

Explanation:

Compound interest rate

A = P × (1 + r)^{n}

where

P = principal amount (the initial amount you borrow or deposit)

r  = annual rate of interest (as a decimal)

A = amount of money accumulated after n years, including interest.

n  =  number of years

Since we want the principle amount to double i.e., A = 2P

put this in above equation

2P = P × (1 + r)^{n}

divide both sides by P, we get

P = (1 + r)^{n}

put r = 0.08

P = (1 + 0.08)^{n}

P = (1 .08)^{n}

Taking log on both sides

㏒ P =㏒ (1 .08)^{n}

㏒ P = n ㏒ (1.08)

n =   ㏒ P ÷ ㏒ (1.08)

8 0
3 years ago
A merit system of police employment is established when an independent civil service commission, in cooperation with the city pe
Illusion [34]

Answer:

Recruitment criteria.

Explanation:

Recruitment criteria are models used to gauge all up-and-comers and their capacity to play out a vocation. You search principally for the most ideal match between an applicant's information, aptitudes, and capacities and the prerequisites for fruitful presentation of work.

4 0
3 years ago
Covenants represent:
gregori [183]

Answer:

the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment

Explanation:

covenants help lenders detect deteriorating loan quality.

8 0
3 years ago
special - time order for 15,000 bird feeders at $ 3,50 per unit Bluebird currently produces and sells . This level represents 80
schepotkina [342]

Answer:

$15,000 Increase

Explanation:

Calculation to determine what the effect on net income will be :

Effect on net income = (15,000 x $3.50) – ($2.50x 15,000)

Effect on net income = $52,500-$37,500

Effect on net income = $15,000 Increase

Therefore If Bluebird accepts this additional business , the effect on net income will be :$15,000 Increase

5 0
3 years ago
Other questions:
  • Taxes cause deadweight losses because they
    6·2 answers
  • Which answer is an example of a market?
    15·1 answer
  • Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go
    9·2 answers
  • The budget is one of the three values of earned value management and is also known as _____. a. actual cost b. indirect cost c.
    9·1 answer
  • Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were ca
    10·1 answer
  • You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c
    7·1 answer
  • Question 7 (10 points) A company received cash sales of $15000. They also collected $43000 in receivables during the month. Answ
    15·1 answer
  • Money in your emergency fund could be wisely used:
    12·1 answer
  • On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the not
    11·1 answer
  • the best reason for investing company resources in vertical integration (either forward or backward) is to
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!