In August a farmer will harvest 5000 tons of wheat. The current (May) cash price is $7/ton. The farmer wants to lock in this price, so he shorts an August contract at the price $8/ton. What will be the effective price for the famer if in August the cash price of wheat is $6/ton and the future price is $7.10/ton?
Q: psychic will tell you the sex of the unborn child from any photograph of the mother. Cost is $ 40.…
A: Given that: Boy Probability is 0.51 and Girl Probability is 0.49.
Q: business owner is planning to strategies his company's growth, he can either buy , rent, or lease a…
A: Given information- The probability of business doing good = 0.7 The probability of a slow business…
Q: The buyer and seller are engaging in an FPIF (Fixed-Price Incentive Fee) contract and agree on the…
A:
Q: The expected value of perfect information is the same as: maximin payoff. maximax payoff.…
A: Expected value of perfect information (EVPI) is the value a person is willing to pay to receive…
Q: Given the option to pay discount points on my mortgage, which can lower my interest rate by varying…
A: Thus, a reduction of 0.50% yields a breakeven point of approximately 83.73 months (about 7 years),…
Q: Scenario Dan and Leo agree to buy and sell “groceries and sundries” from Public Growers, Inc., in…
A: In evaluating whether a contract has been formed and whether the situation is governed by common law…
Q: Applying the decision tree algorithm, determine and advice Koki Nkoana on the best decision to make?
A: THE ANSWER IS AS BELOW:
Q: A retailer is deciding how many units of a certain product to stock. The historical probability…
A: The smallest conditional value (profit) in the entire payoff table for this scenario is as given…
Q: eferring to the pay-off table, determine which alternative would be chosen under each of these…
A: Find the given details below: Given Details Possible future demand in OMR Alternatives Low…
Q: Compute the present value of $80,000, to be received in 10 years, if the interest rate is 12%
A: Given, PV = 80,000 Time(n) = 10 years Interest = 12%
Q: A company is considering either (1) purchasing equipment for use on a new project (purchase cost =…
A: From the given information, Alternative 1: Purchasing equipment for use on a new project Purchase…
Q: A 72-unit apartment building in Riverside, California was acquired for $36 million at a 7.0% cap…
A: The correct answer is b. 7.7%.Explanation:Step 1: Calculation Steps:Calculate the Loan…
Q: CanaSystems is considering a project to build upscale condominiums. They are considering plans on a…
A: Opportunity loss is characterized as the contrast between the real result and the result that would…
Q: What would your strategy be for negotiating that agreement? What would be the steps required to have…
A: As mentioned in the question, a company operates 60% of the wells in an aging field in Scurry County…
Q: It is the beginning of September and you have been offered the following deal to go heli-skiing. If…
A:
Q: Hemmingway, Inc. is considering a $5 million research and development (R&D) project. Profit…
A: Expected value helps the organization in the optimal utilization of resources by determining where a…
Q: In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In…
A: Introduction:- Price of the product is mainly decide by the cost of the product. Cost refers to the…
Q: A carpet manufacturer, whose discount rate is 10%, can purchase texturizing equipment for $1,250,000…
A: Here, the decision is required to purchase the equipment, I would use NPV or net present value…
Q: The Jones Manufacturing Company is competing for a production contract that requires that work begin…
A: The team members of the project should complete the work before the release date of the contract.
Q: Scenario Dan and Leo agree to buy and sell “groceries and sundries” from Public Growers, Inc., in…
A: Breach of contract occurs when the performance of the contract is not completed as per the promises.…
Q: $2.7 million. the cost of goods sold is estimated to be 40 percent of sales, and corporate overhead…
A: Conclusion:The decision ultimately depends on whether the company values the liquidity and lower…
Q: An owner, who bought an industrial building without financing on January 1st eight years ago for…
A: In the realm of real estate transactions, understanding the financial implications of property sales…
Q: agen mated that there is a 50% chance that an agreement will be reached on the aries of the workers.…
A: this situation can be explained through a Venn diagram SINCE p(S U I) c =0.2, P(S U I)= 0.8 Then ,…
Q: A used car salesman has the following typical strategy for selling cars. His car is really worth…
A: A heuristic is any approach to problem-solving that uses a practical approach or different shortcuts…
Q: Dan and Leo agree to buy and sell “groceries and sundries” from Public Growers, Inc., in their…
A: This case centers on a contract dispute between Dan and Leo, owners of a grocery store, and Public…
Q: You drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with…
A: The question revolves around an automobile accident involving you, your neighbor, and your friend.…
Q: When a contract includes multiple performance obligations... All revenue is recognized in the amount…
A: A contract is a legitimately restricted and enforceable understanding between at least two…
Q: A contract with a vendor stipulates a cost plus incentive fee contract. The contract has a target…
A: Target cost of the contract = 1, 50,000 Actual cost of the contract = 1, 75,000
Q: Ken is an appraiser who was hired to appraise a single-family home. Ken's subject property is…
A: The objective of the question is to identify the most effective valuation method for Ken to appraise…
Q: ABC Construction Company is awarded a contract to build a residential housing complex for XYZ…
A: In construction contracts, a lump-sum contract is a common type of agreement where the contractor…
Q: Harley, an ice-cream vendor, purchases each pint of ice-cream for $7 and sells for $20 each. At the…
A: For this question, I will determine the cost of underage and cost of overage, Let me state the given…
Q: I draw 5 cards from a deck (replacing each cardimmediately after it is drawn). I receive $4 for each…
A:
Step by step
Solved in 2 steps
- The buyer and seller are scheduled to close the sales transaction on Wednesday, June 14. The taxes for the year were $3,500 and were paid in arrears. How would this appear on a closing statement? O A credit and debit to the seller. O A credit to the buyer and a debit to the seller. O A credit to the seller and a debit to the buver. • A credit and debit to the buyer.An industrial property’s first year annual NOI is projected to be $777,000, the property’s acquisition cap rate is 7.0%, and the lender’s maximum LTV is 70% of the purchase price. What is the maximum loan amount that can be borrowed against the property? Group of answer choices $11,100,000 $7,770,000 $3,330,000 $15,857,1437. Three bidders have a private valuation drawn from a uniform distribution on [0,30] for a single item. The valuations are 10, 15 and 20 for bidders 1, 2 and 3 respectively. a) What are the bidders' equilibrium strategies in a second price auction? b) Show that for bidder 2 no deviation from his strategy in a) would be profitable. c) Who wins the auction and how much do they pay? d) If instead the seller uses a first price sealed bid auction, what are the bidders' equilibrium strategies?
- The owner of a copper mine gets together with all the other copper mine owners and agrees to enter a trust with them. The board of “trustees” for this copper trust then sets the price of copper much higher than they were selling it for before. Is this a vertical integration or a horizontal integration?kindly do solve accurately and exact with correct formuas thanks..with complete steps(d) The company only has 4 workstations available. If it only operates its 4stations, how many weeks does it need to meet the production requirements?(e) The company has other contracts it needs to satisfy. Working on themugs more than 4 weeks means it will have to cancel another contract,incurring a penalty of $4,500. Each new workstation costs the company$2,500. What should the company do: cancel the contract or buy therequired workstations?
- Answer please with correct optionPlease don't hand writing suliutioThe owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to produce and sell 5,000 rosebushes?
- A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance weather pure parametric aggregate loss index parametric indexSaving Plan Options An insurance company offers a saving plan that has two options for the insured to withdraw money after maturity. Option A consists of a guaranteed payment of £1500 at the end of each month for 15 years. Alternatively, under option B, the insured receives a lump-sum payment equal to the present value of the payments described under option A. (a) Find the sum of the payments under option A. (b) Find the lump-sum payment under option B if it is determined by using an interest rate of 2.25% compounded monthly. Round the answer to the nearest pound. C. Which option is better? Why?All of the following are advantages to contracting except: a. Reducing income riskb. Assuring a market for a commodityc. Eliminating default risk of a single buyerd. Ensuring and rewarding for quality