Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

A different ethanol processing facility costs $800,000 to construct but will instead last forever. Every year (starting the year after construction), it produces 10,000 barrels of ethanol and can charge a price of $4 per barrel. At what interest rate would an investor be indifferent between constructing the facility and simply keeping the money?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M93111474
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Economics

In 2009 the hershey company of pennsylvania became the

In 2009, the hershey company of pennsylvania became the latest company to open a candy factory in mexico, joining other american candy companies including brach's confections and ferrara pan candy, which had opened plans ...

What is the best point estimate for the populations

What is the best point estimate for the population's variance if the sample variance is 41.5? Round your answer to one decimal place, if necessary.

It has been a bad day for the stock market and you have

It has been a bad day for the stock market and you have heard that only 30% of all stocks gained value. Suppose you have a portfolio of 10 securities and assume a binomial distribution for the number of your stocks that ...

According to a researchnbspinstitution the average hotel

According to a research? institution, the average hotel price in a certain year was ?$95.36. Assume the population standard deviation is ?$20.00 and that a random sample of 42 hotels was selected. a.  Calculate the stand ...

State whether each of the following will increase decrease

State whether each of the following will increase, decrease, or have no effect on the population variance. (a) the sum of squares ( SS ) increases This change will increase the population variance. This change will decre ...

A five-year bond with a yield of 11 continuously compounded

A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bo ...

Suppose that the demand curve for tickets to see a football

Suppose that the demand curve for tickets to see a football team play a game is given by Q = 80,000 - 40P and marginal cost is zero. The team's stadium can host 75,000 fans. i) How many tickets would the team sell if it ...

Based on a poll 60 of internet users are more careful about

Based on a? poll, 60?% of Internet users are more careful about personal information when using a public? Wi-Fi hotspot. What is the probability that among four randomly selected Internet? users, at least one is more car ...

If a new technology in the us shale oil extraction could

If a new technology in the U.S. shale oil extraction could produce crude oil even more efficiently; at the same time, the U.S. federal government decided to subsidize people for electric car purchase, what would you expe ...

How does off-task behavior change the dynamics of the

How does off-task behavior change the dynamics of the learning environment? Provide an example and a strategy to handle the behavior.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As