The current price of gold is $310.00 per ounce. The effective lease rate and risk free rate are 1.0% and 3.5%, respectively
If the cost to mine one ounce of gold is a constant $250, what is the value of an option to wait and mine the gold later?
A)
$135
B)
$145
C)
$155
D)
$165
Answer:
B
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Which of the following refers to a standard for transmitting information in the form of radio waves over distances up to about several miles?
A. LAN B. WiFi C. Bluetooth D. NFC
A local science museum normally sells tickets to its museum for $5 each. The daily maximum capacity of the museum is 1,000 visitors. At the maximum capacity, fixed costs are $2 per visitor and variable costs are $1.50 per visitor. A local school group has approached the museum wishing to purchase 50 special passes at a cost of $2.50 each. Assuming the museum has excess capacity, if the special
order were accepted, net income would: A) increase by $50.00. B) decrease by $125.00. C) increase by $125.00. D) decrease by $50.00.
Once a firm chooses a business model, it must stick with it for the life of the firm.
Answer the following statement true (T) or false (F)
Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,000 calls and incurred costs of $312,000. Of these calls, 3,800 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:
A. $0. B. $31,200. C. $203,000. D. $193,440. E. $118,560.