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3 years ago

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Farmer Ted planted 200 acres in wheat this year. The weather has been perfect and he expects to harvest a record crop within the

next two weeks. At present, he has no storage facilities and therefore must sell his crop as soon as it is harvested. Which one of the following risks is he facing because he must sell his crop at whatever the market price is at harvest time?
a. Futures risk.
b. Volatility exposure.
c. Surplus risk.
d. Transactions exposure.
e. Translation exposure.

1 answer:

mina [271]3 years ago

5 0

Answer:

d. Transactions exposure.

Explanation:

Transactions exposure -

It is the level of uncertainty involved in a business in the international trade face .

It is the risk which currency exchange rates would fluctuate after the firm has taken a financial obligation .

The high level of vulnerability to shift the exchange rates can lead to the loss of the major capital for the international business .

Hence from the information of the question , the correct answer is d. Transactions exposure .

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Suppose the local slaughterhouse gives off an unpleasant stench. the price of meat would then be too low because not all of the costs are accounted for in the marketplace.

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An increase in demand and a decrease in supply raises the slaughterhouse price, but the effect on the equilibrium quantity cannot be determined. 1. For each quantity, consumers should place a higher value on the goods and producers should set a higher price to supply the goods. Therefore, the price is higher.

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1 year ago

Which is the difference between static storage systems and dynamic storage systems

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Answer:

In a static storage area each product is assigned a specific area, whereas in dynamic storage, product locations and fluid and as such are subject to change.

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3 years ago

What is a demand relationship?

NeX [460]

Answer:

Demand relationship is the relationship between the dominant prices of a good and the quantity that will be bought at that price.

Explanation:

Demand can be defined as the quantity of a good that consumers are ready to purchase at different prices at a given period of time.

The basic demand relationship is between potential prices of a good and the quantities that would be bought at those prices. The relationship is always a negative one, this implies that an increase in price will lead to a decrease in the quantity demanded. This negative relationship is represented in the downward slope of the consumer demand curve. Take for instance, if the price of a bag of rice rises from $10 to a price of $20, this is a huge price increase. This increase forces the consumer to demand less of that product at the price of $20 because the new price is more expensive and also very unreasonable for a bag of rice.

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3 years ago

If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free c

fredd [130]

Answer: False

Explanation:

This seems to me like a True or False question and the answer would be False.

Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.

For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.

If you need any clarification do react or comment.

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2 years ago

A body in the solar system has a period of 10,759.22 days and a perihelion speed of 10.18 km/s. a. Calculate the aphelion radius

anastassius [24]

Answer:

Explanation:

From the information given, by applying Kepler's 3rd law,

$T^2 \alpha a^3$

where;

T = period

a = semi major axis

T = 356 days (for earth)

a = 1 AU = 1.496 $\times 10^8 \ km$

Therefore, $T^2 = ca^3$

$c= \dfrac{365^2}{(1.496 \times 10^8)^3}$

c = 3.9791 $\times 10^{20} \ day^2/km^3$

However, if the body in the solar system has a period of 10.759.22 days, then, a =?

∴

$T^2 = ca^3$

$a3 = \dfrac{10759.22^2}{3.9791 \times 10^{-20}}$

$a^3 = 2.9092 \times 10^{27}$

$a= \sqrt[3]{2.9092 \times 10^{27}}$

a = 1.4275 $\times 10^9 \ km$

However, the velocity for a perihelion = 10.18 km/s

Using the formula

$v = \sqrt{GM ( \dfrac{2}{r}-\dfrac{1}{a})}$ to calculate the radius, we have:

G = $6.674 \times 10^{-11}$

M = $1.989\times 10^{30} \ kg$

r = perihelion

$v ^2= GM ( \dfrac{2}{r}-\dfrac{1}{a})$

$(10.18 \times 10^3) ^2= 6.674 \times 10^{-11} \times 1.989 \times 10^{30} ( \dfrac{2}{r}-\dfrac{1}{1.425 \times 10^{12}})$

$7.8068 \times 10^{-13}= \dfrac{2}{r}-\dfrac{1}{1.425 \times 10^{12}}$

$\dfrac{2}{r} = 1.4824 \times 10^{-12}$

$r = \dfrac{2}{1.4824 \times 10^{-12}}$

$r = 1.349 \times 10^{12}$

Similarly, the perihelion is expressed by the equation,

r = a(1 - e)

where ;

e= eccentricity

∴

$1.349 \times 10^{12} = 1.425 \times 10^{12} ( 1 - e)$

$1.349 \times 10^{12} - 1.425 \times 10^{12}= - 1.425 \times 10^{12} (e)$

$-7.6\times 10^{10}= - 1.425 \times 10^{12} (e)$

$\dfrac{-7.6\times 10^{10}}{- 1.425 \times 10^{12}}= (e)$

e ( eccentricity) = 0.0533

Aphelion radius in natural miles, r = a( 1+ e)

$r = 1.425 \times 10^{12} ( 1 + 0.0533)$

$r = 1.50 \times 10^{12} \ m$

to nautical miles, we have:

$r = 1.50 \times 10^{12} \times 0.00054 \ nautical \ mile$

radius of aphelion $\mathbf{r = 8.10 \times 10^8}$ nautical miles

In respect to the value of a( i.e $1.4275 \times 10^9 \ km)$

the body of the solar system is Saturn

5 0

3 years ago