A Mining Company Has the Opportunity to Extract from a Coal

question 321

Multiple Choice

A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound. The current market rate of interest is 5 percent. The present value of this extraction is

• A)$36.
• B)$38.
• C)$40.
• D)$42.

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Definitions:

Managers

Individuals responsible for controlling or overseeing an organization or one of its divisions.

Negative Slack

The condition in project management when a task or project is running behind its scheduled timeline, indicating delayed progress.

Shadow Price

An economic concept representing the implicit value of a resource that is not directly priced in the market.

Solver

A tool or algorithm used to find solutions to mathematical problems or optimize certain processes.