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
olasank [31]
3 years ago
8

Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $103,000 apiece. The sequesters last for

only 1 year before becoming saturated. Then the carbon is sold to the government.
Required:
a. Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,510 for sure. How would you determine the opportunity cost of capital for this investment?
b. Suppose instead that the sequestered carbon has to be sold on the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Bustersâ CFO learns that average rates of return from investments on that exchange have been about 22%. She thinks this is a reasonable forecast for the future. What is the opportunity cost of capital in this case?
c. If the expected return on the investment is still 17%, but instead depends on the price of carbon (so that it is no longer risk-free), then is the purchase of additional sequesters an attractive investment for the firm?
d. Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,510 for sure. How would you determine the opportunity cost of capital for this investment?
Business
2 answers:
dangina [55]3 years ago
8 0

Answer:

to the end of the sixth year;

b/ The number of years required before the capital stock exceeds $200 000.

vovangra [49]3 years ago
6 0

Answer:

gp

if

0 Oqhrcp

qudagcow

eyryAFfworaygra

woufgrq

ouwgrvr2ougfurff82d82gd81gsuyu1hus81gdup1rgcaupwr

vgsg

a7orfaw

r7ogs2

rgowafac

qo77gdqoqqr

fygqqr

oufgqycSITfdFIYf2rytf

cq2

rydceq2

oeyfgqr

You might be interested in
An expected increase in the prices of consumer goods in the near future will _____.
Elena-2011 [213]

Answer:

increase (or shift right) in aggregate demand now

Explanation:

due to speculative reasons, when individuals and firms expect higher prices in the near future, they will purchase more goods now, shifting the demand curve to the right. This shift is only temporary since the increase in the demand of goods was the result of not wanting to pay higher prices in the future.

5 0
3 years ago
There is a bias in the political process against free trade because ______.
Helga [31]

Answer:

B. those who lose from free trade are better organized than those who gain.

Explanation:

There is a bias in the political process against free trade because <u>those who lose from free trade are better organized than those who gain</u>.

Free trades are the business agreement between two or more countries to import or exports among these countries does not have tax duties to follow, which boast their relationship and economy of countries as people can get quality goods at very low cost from other nation, however, many domestic organized sectors the affected by the free trade as they lose customer and revenue. Therefore, free trade has a negative effect on the local producer, which causes bias in the political process against free trade.

3 0
3 years ago
If a material conducts heat easily, its a good _____.
V125BC [204]

conductor

hope this helps :)

4 0
3 years ago
Read 2 more answers
The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The c
motikmotik

Answer:

$80,800

Explanation:

Calculation to determine the annual cash inflow have to be to make the investment in the equipment financially attractive

Using this formula

Annual cash flows = Negative net present value to be offset ÷ Present value factor

Let plug in the formula

Annual cash flows = $401,414 ÷ 4.968

Annual cash flows = $80,800

Therefore the annual cash inflow have to be to make the investment in the equipment financially attractive is $80,800

4 0
3 years ago
Which of these may have been used as a point of beginning in the meets and bounds system?
iren2701 [21]
A or d u find out k h
5 0
4 years ago
Read 2 more answers
Other questions:
  • If a bookstore manager prices a book higher than the equilibrium price, then _____. A. the market price of the book will become
    11·2 answers
  • Company expected to incur $9,450 in manufacturing overhead costs and use 4,500 machine hours for the year. Actual manufacturing
    8·1 answer
  • Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $575,
    6·1 answer
  • A corporation in 2018 expects a gross income of ​$475,000​, total operating expenses of ​$350,000​, and capital investments of ​
    8·1 answer
  • Identify a disadvantage of being an S corporation.
    5·1 answer
  • On September 1, 2021, Blue Co., issued $1,600,000 of its 10% bonds at 98 plus accrued interest. The bonds are dated June 1, 2021
    12·1 answer
  • If a compound sentence is joined using a conjunction, what punctuation mark is used with the conjunction to join the clauses?
    7·2 answers
  • 12. Why did Native Americans work to expand their rights?<br>​
    10·1 answer
  • Use the dividend growth model to determine the required rate of return for equity. Your firm recently paid a dividend of $2.25 p
    13·1 answer
  • To reconcile the number of physical units using the weighted average method of process costing, one must determine whether the u
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!