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Montano1993 [528]
3 years ago
11

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 8% per year forever. If the appropriate interest rate is 6%, then the value of this mining operation is closest to:
Business
1 answer:
Alla [95]3 years ago
5 0

Answer:

$71,428.57

Explanation:

we can use the perpetuity formula to solve this question:

present value = future cash flow / (discount rate - g)

  • future cash flow = $10,000
  • discount rate = 6%
  • g = growth rate = -8%

present value = $10,000 / (6% - - 8%) = $10,000 / 14% = $71,428.57

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Corporations argue that corporate welfare is motivated by sound economics. Critics of large corporations see the policy as unfai
sergejj [24]

Answer:

It is an unfair support of those who need it most

Explanation:

Corporate welfare are supports in the form of grants and other benefits that a corporation enjoy from government.

The intention is to guide business against potential risks , stabilize and encourage growth of business operation.

However , this purpose has been defeated on several occasions as some organizations have fraudulently claimed the benefits and the grants not even put to a proper use and it ends up a waste of resources. Moreover , it can easily be politically influenced as some corporations' connection to political offices determine what they get at the detriments of others.

This practice is not fair to small business owners who appears to even need it more to enable growth and the strength to withstand competition.

7 0
3 years ago
Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requ
Alona [7]

Answer:

$20.

Explanation:

So, we have the following important data or parameters the are going to help us or assist us in solving this particular Question or problem.

(1). Total number of customers served campers = 6600.

(2). Rental payment per month = $3,300.

(3). Total number of months = 12 months( that is January to December).

(4). "The variable cost of providing service is expected to be $5 per camper"

So, let us delve right into the solution of the question.

Step one: determine the fixed cost per unit. The fixed cost per unit can be determined by following the formula below;

Fixed cost per unit = (rental payment pee month × number of months) ÷ total number of campers.

Thus, the fixed cost per unit = $3,300 × 12) ÷ 6,600.

The fixed cost per unit = 6.

STEP TWO: The next thing to do now is to determine the price it should charge for a camp site in February and August.

Kindly note that this the price that it should charge for a camp site in February and August are going to be the same.

Therefore, the price it should charge for a camp site in February and August = $6 + $5 + $9 = $20.

4 0
3 years ago
Which of the following is not an example of an unhealthy company culture?
vampirchik [111]

Answer: The following is not an example of an unhealthy company culture: <u><em>A slowly evolving culture </em></u>

In the given question it can be stated that apart from option (d) , all other option are an example of an unhealthy company culture. This is so as, the slow evolving culture in an organization is still open to change and does adapt to the need of the surroundings as time evolves, whereas; other given option does not.

<u><em>Therefore , the correct option in this is (d)</em></u>

8 0
3 years ago
In 2002 the u.s. had a gpd (gross domestic product) of $10.5 trillion. what does that mean
olganol [36]
Thats how much product was produced and sold in the united states 
3 0
3 years ago
The factor that has the greatest impact on your credit score
hammer [34]
Any amount of debt of late fines you owe
3 0
3 years ago
Read 2 more answers
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