Since the 4.5 million is just an expected amount of fuel, J&L cannot achieve a perfect hedge in the future. They should estimate the accurate demand for fuel next year. 2. What are the pros and cons of using NYMEX contracts versus using the risk-management products offered by Continental Bank? Is the use of a monthly average price a net advantage or disadvantage to J & L?
The formula S = C (1 + r)^t models inflation, where C = the value today r = the annual inflation rate S = the inflated value t years from now Use this formula to solve the following problem: If the inflation rate is 3%, how much will a house now worth $510,000 be worth in 5 years? 510000(1ⓜ┤+ⓜ0.03)^5 =591229.777893 591229.77789300005 Write 6 = log2 64 in its equivalent exponential form. 26=64 Write 8y = 300 in its equivalent logarithmic form. log 300 = log 8y log(3*100)=log 8y log 3+log100=log 8+log y log 3+2=log 8+log y log 8-log 3=log y-2 By log(A/B)=log A-log B, log (8/3)=log y-2 Hurricanes are some of the largest storms on earth. They are very low pressure areas with diameters of over 500 miles.
Hopefully you will live until the end of this century - 2100; what will be the amount of CO2 in the atmosphere in 2100 assuming there is no change in the emissions rate of 2 ppm/year? 3. What is potentially wrong with the answer you selected above, our prediction for the future based on current CO2 emissions? 4. What is the percent of CO2 in the atmosphere that humans are emitting per year relative to preanthropogenic levels?
Case 12-7 Facts: Rossi Inc.: Asbestos Litigation Liability: The cost of settlement and defensed costs relating to currently pending claims and future claims for losses incurred to date. Liabilities recorded per/as at Dec 31. | 2009 | 2008 | 2007 | Rossi Inc. | $962m | $1,055m | $469m | Thompson (External Specialist) | $1124m | $1,055m | | Internal Actuarial Specialist | $907m, $1,184m, and $1,514m | | | The 2007 claim estimate is projected through 2011. The 2008 and 2009 estimate are projected through 2017. During 2009: The reserve is reduced by payment, but no addition; Higher mesothelioma settlement amounts (Est.
What would the cash conversion cycle for The Greek Connection have been in 2012 had it matched the industry average for accounts receivable days? Question 5. Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. Normal Cost of Trade Credit = [Discount percentage/(100-Discount percentage)]*[365days/(credit outstanding-Discount Period)] Normal Cost of trade credit = (3/97)*(365/30) = 37.63% Question 6.
Week Three Discussion Questions • Can the probability be more than 1 or less than 0? Explain why or why not. According to the Statistics for Business and Economics book, probabilities have to follow two basic rules and one of them is that the number has to be between 0 and 1. Therefore, the probability cannot be more than 1 and less than 0. • Based on the data collected on a typical day, what is the probability that oil change will take 15 minutes or less time?
2. I utilized an “Acid Test Ratio” which shows us whether the entity could pay all its current liabilities if they became due now or sooner than expected. In 2011, the acid test ratio was 0.64. By 2012, it decreased to 0.43. Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities.
The optional aggregate plan is shown in Table below. Total Cost = $19,032,410.71 Revenue = $55,100,000 Profit = $36,067,589 • If there is no promotion, the optional aggregate plan is shown in table below. Total Cost = $16,062,415.02 Revenue = $53,500,000 Profit = $37,437,584.98 • Observe that a price promotion in September results in a higher profit than a promotion in November, whereas no promotion results in a highest profit. As a result, if offering the discount of $10, Mintendo should not offer any price promotion 3. Suppose Sandra’s fears about increasing outsourcing costs come to fruition and the cost
Vanorian Purley August 5, 2013 Economics 550 Check Your Understanding CHAPTER 9 3. Electrical generation study of 56 British firms: a. VC = AVC(Q) VC = 1.24Q + .0033Q2 + .0000029Q3 − .000046Q2Z − .026QZ + .00018QZ2 b. MC = 1.24 + .0066Q + .0000087Q2 − .000092QZ − .026Z + .00018Z2 c. Z = 150(thousand) kilowatts SRAVC = 1.24 + .0033Q + .0000029Q2 − .000046Q(150) − .026(150) + .00018(150)2 SRAVC = 1.39 − .0036Q + .0000029Q2 SRMC = 1.24 + .0066Q + .0000087Q2 − .000092Q(150) − .026(150) + .00018(150)2 SRMC = 1.39 − .0072Q + .0000087Q2 d. d(SRAVC)/dQ = 0 (condition for minimum SRAVC) = −.0036 + .0000058Q = 0 Q* = 620.7 (million) kilowatt-hours/year e. SRAVC = 1.39 − .0036(620.7) + .0000029(620.7)2 = .27 pence SRMC = 1.39
If there is an increase, it must be rounded to the nearest tenth of one percent. If there is no increase, or if the rounded increase is zero, there is no COLA. The last year in which a COLA became effective was 2008. Therefore the law requires that we use the average CPI-W for the third quarter of 2008 as the base from which we measure the increase (if any) in the average CPI-W. The base average is 215.495 (US Government).