Business, 02.09.2020 18:01 Brittpaulina
Pollution Busters Inc. is considering a purchase of 10 additional carbon Pollution Busters Inc. is considering a purchase of 10 additional sequesters for $100,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon is sold to the government.
Requirements:
(1) Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $115,000 for sure. What is the opportunity cost of capital for this investment?
a. U. S. Treasuries with 1 year to maturity.
b. U. S. Treasuries with 2 years to maturity.
c. U. S. Treasuries with 3 years to maturity.
(2) Suppose instead that the sequestered carbon has to be sold on the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Busters' CFO learns that average rates of return from investments on that exchange have been about 20%. She thinks this is a reasonable forecast for the future. What is the opportunity cost of capital in this case?
(3) Is the purchase of additional sequesters a worthwhile capital investment?
Answers: 3
Business, 21.06.2019 14:50
Which of the following is the most direct cause of cost-push inflation? a. rising production costs. b. reductions in wages. c. greater scarcity of natural resources. d. increasing supply of goods and services. 2b2t
Answers: 3
Business, 22.06.2019 05:00
What is a sort of auction for stocks in which traders verbally submit their offers?
Answers: 3
Business, 22.06.2019 19:00
Read the scenario. alfonso is 19 years old and has a high school diploma. recently, he was promoted to assistant manager at the fast-food restaurant where he has worked since the age of sixteen. his dream is to become the restaurant’s manager. what is his best option for achieving his dream? he should find another job and work his way up to a higher position. he should hope that his manager transfers to another location and that he is his replacement. he should attend classes at the local college to receive training in management. he should work hard, work longer hours, and remain assistant manager.
Answers: 2
Business, 22.06.2019 23:20
Suppose you manage an upscale restaurant in new york city. would involve writing employee schedules and a list of things to do for the chef and other kitchen staff
Answers: 3
Pollution Busters Inc. is considering a purchase of 10 additional carbon Pollution Busters Inc. is c...
Mathematics, 17.10.2020 19:01
History, 17.10.2020 19:01
Computers and Technology, 17.10.2020 19:01
Mathematics, 17.10.2020 19:01
Social Studies, 17.10.2020 19:01
History, 17.10.2020 19:01