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Alex
3 years ago
5

You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the s

urface is removed it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decline at a rate of 7% per year forever. If the appropriate interest rate is 3%, then the value of this mining operation is closest to
Business
1 answer:
Agata [3.3K]3 years ago
7 0

Answer:

$100,000

Explanation:

Cash flow = $10,000

Interest rate = 3%

Growth = -7%

Value of this mining operation = Cash / (Rate - Growth)

Value of this mining operation = $10,000 / (3% -(-7%)

Value of this mining operation = $10,000 / 10%

Value of this mining operation = $10,000 / 0.10

Value of this mining operation = $100,000

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The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of
inessss [21]

Answer:

It is called d. the Coase theorem

Explanation:

"If private parties ... over externalities on their own" is the common wording of the Coase theorem.

Besides the commonly mentioned requirement that transaction cost must be zero, there are other assumptions to be satisfied including:

1. Clearly defined property rights (to bargain on)

2. No wealth effects (because the money you receive/pay for the benefits/costs will make you poorer/richer and change how valuable they are to you)

8 0
3 years ago
A.J. is the vice president for Keane Products, a marketing consulting firm. On a business trip to New York City in 2019, he meet
Ede4ka [16]

Answer:

$312

Explanation:

Business Travel expenses are costs incurred when you are away from home on businesses. Accordingly, in this case, AJ is allowed to deduct 50% of his entertainment costs (that is, meal and theater tickets) since it follows a substantial business discussion. The cost of transportation, that is the cab fare is fully covered under the business expenses as it is not subject to the 50% rule of deduction for entertainment and the likes.

Thus,

Total money AJ can deduct as business expenses.

= (50% of 350) + (50% of 190) + 42

= 175 + 95 + 42

= $312

7 0
4 years ago
South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all state agencie
choli [55]

<u>Answer:</u> This approach is called attrition.

<u>Explanation:</u>

Attrition is the process of reducing the workforce of the company due to various reasons. Here South Carolina has lot of budget constraints which forces the state to reduce the in take of new employees. This approach can also be called as hiring freeze so that the payroll can be reduced instead of doing layoffs.

The strength of the state is reduced in order to reduce the expenses and money pay outs. When there is a deficiency in the budgets actions have to be taken accordingly to minimize the effects.

8 0
3 years ago
What does the new york stock exchange (nyse) do?
Sauron [17]
Hey there,
It is located on Wall street new lower Manhattan and it is the world's largest stock exchange<span> by market capitalization of listed companies.

Hope this helps :))

~Top
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8 0
3 years ago
Read 2 more answers
Keller learns to think that everything has a lesson and a? A.)suggestion or B.)moral​
Anni [7]

B.) moral I think. Hope this helps

6 0
3 years ago
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