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
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

You might be interested in
"Assume that Stephanie accumulates savings of $ 2 million by the time she retires. If she invests this savings at 12​%, how much
Lyrx [107]

Answer:

Explanation:

This is an annuity question. Use present value of annuity formula to solve this;

You can use a financial calculator to solve it. I'm using "Texas instrument BA II plus" calculator

<em>(Note: if using the same calculator as above ,enter the numbers first, then each respective function )</em>

N ; duration on investment = 20

I/Y; interest rate per year = 12%

PV; Present value = -2,000,000

FV; Future value = 0 (in annuities, use 0 if not given)

then CPT PMT = 267,757.56

Therefore, Stephanie will be able to withdraw $267,757.56

7 0
3 years ago
How did the relationship between Parliament and the Restoration monarchs, Charles II and James II, change following the English
Tatiana [17]

Answer:

The monarchs continued to challenge Parliament's authority.

Explanation:

Following the English Civil War, tensions between the monarchs and Parliament began to grow. Queen Elizabeth did not leave any heir, therefore, James I began the Stuart Dynasty. James I believed in Divine Rule, which was in oppose of Queen Elizabeth's rule who worked with Parliament.

After the English Civil War, the monarchs continues to challenge Parliament's authority. During Restoration monarchs, Charles II and James II, Parliament and monarchs were in conflict with each other.

Therefore, option C is correct.

4 0
2 years ago
Read 2 more answers
Rebotar Inc. makes basketballs. Their fixed costs are $3,450. Variable costs are $12 per basketball. If the basketball is priced
JulsSmile [24]

Answer:

yes

Explanation:

The contribution margin concept uses the formula below to calculate the break-even point.

break-even = fixed cost/ contribution margin per unit

fixed costs = $3,450.

contribution margin per unit = sales price - variable costs

= $25- $12

=$13

Break-even = $3,450 /$13

=265.38

=265 units

The break-even point is 265 units. Rebotar Inc. sold 300 basketballs; they meet the break-even point. 300 basketballs are more than 265.

8 0
2 years ago
Minden, Mel, and Montana decide to liquidate their partnership. All assets are sold, and the liabilities are paid. Following the
Leto [7]

<u>Answer:</u>

The amount of cash that will be received by Montana is $37000.

<u>Explanation:</u><u> </u>  

                                                 Minden           Mel       Montana

Profit sharing ratio                                 30%             40%            30%

Balances                                                 27000       -12000    43000

Deficiency distrubuted                           -6000      12000    -6000

Cash received by partners                    21000           0            37000    

Minden and Montana have to contribute in their

profit sharing ratio (30% and 30%), i.e., equally.

Therefore, the amount of cash that will be received by Montana is $37000.

4 0
3 years ago
"A marketing management technique whereby the company's current product offerings are reviewed to ascertain whether each product
Burka [1]

Answer:

Product audit.

Explanation:

Product audit is defined as an evaluation of a finished product to see if it's use meets the intent or purpose of the product.

It involves a thorough check on the product to ensure it serves its purpose before it is release and supplied to the customer.

Product audit takes place after manufacturing is complete, if the product does not meet specified standards the auditor logs a non conformance. The products are usually repaired. If this is not possible the product is discarded.

3 0
3 years ago
Other questions:
  • Corba Company is evaluating whether to replace an old machine with a new, more efficient machine. Corba purchased the old machin
    14·1 answer
  • At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a nine-year operating lease agre
    12·1 answer
  • Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f
    6·1 answer
  • Cheyenne Corporation purchased 420 shares of Sherman Inc. common stock for $12,900 (Cheyenne does not have significant influence
    7·1 answer
  • At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following informatio
    13·1 answer
  • Two ships leave port at the same time, Ship X is heading due north and Ship Y is heading due east. Thirteen hours later they are
    8·2 answers
  • Jaymes Corporation produces high-performance rotors. It expects to produce 69,000 rotors in the coming year. It has invested $8,
    12·1 answer
  • 1. How many shares of Apple common stock are issued and outstanding at (a) September 30, 2017, and (b) September 24, 2016? 2. Wh
    11·1 answer
  • Once a project is underway, the project manager is responsible for the:_______a. people. b. cost. c. time. d. All of these
    14·1 answer
  • What would be the best reason for the United States to provide military aid to another country? to protect an established allian
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!