This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for ... (Read 46 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
on: Jul 9, 2019
A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for 10,000 bushels, if it also buys 5000 bushels of wheat at $16.00 per bushel. However, the manufacturer does not use any barley in its products, and currently needs 20,000 bushels of wheat. If the current market price of barley is $3.80 per bushel, and wheat is $15.80 per bushel, should this opportunity be taken, and why?
◦ Because the opportunity does not meet the company's need for wheat, the opportunity should not be taken.
◦ Because the value of the opportunity is negative the opportunity should not be taken.
◦ Because the value of the opportunity is positive, the opportunity should be taken.
◦ Because the company has no need of barley, the opportunity should not be taken.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by maegan_martin on Jul 9, 2019

alexisweber49

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


maegan_martin

  • Member
  • Posts: 532
Reply 2 on: Jul 9, 2019
Excellent

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Microscopic photo taken by Opportunity showing a gray hematite concretion, indicative of the past pr Microscopic photo taken by Opportunity showing a gray hematite concretion, indicative of the past pr
This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern
In this photo opportunity, Phillies manager Ben Chapman refused to shake Jackie Robinson’s hand. ... In this photo opportunity, Phillies manager Ben Chapman refused to shake Jackie Robinson’s hand. ...
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Oatmeal and other whole grain cereals are good sources of carbohydrates to start your morning off Oatmeal and other whole grain cereals are good sources of carbohydrates to start your morning off
Dominican breakfast Dominican breakfast
Video: Cellular Defects - Osteoblasts, Osteoclasts and Osteocytes

For a complete list of videos, visit our video library