Deep Mining and Precious Metals Are Separate Firms That Are

question 47

Multiple Choice

Deep Mining and Precious Metals are separate firms that are both considering a silver exploration project.Deep Mining is in the actual mining business and has an aftertax cost of capital of 12.8 percent.Precious Metals is in the precious gem retail business and has an aftertax cost of capital of 10.6 percent.The project under consideration has initial costs of $575,000 and anticipated annual cash inflows of $102,000 a year for ten years.Which firm(s) ,if either,should accept this project?

• A)Company A only
• B)Company B only
• C)both Company A and Company B
• D)neither Company A or Company B
• E)cannot be determined without further information

Recognize the significance of mixed economies and their characteristics.

Understand the historical impact and consequences of specific economic policies and revolutions.

Identify statements about economic systems and evaluate their accuracy.

Understand the concept of public goods and their characteristics.

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Definitions:

Average

A numerical expression of the central or typical value in a set of data, calculated typically as the sum of the values divided by the number of values.

WISC-IV

Wechsler Intelligence Scale for Children, Fourth Edition; a standardized test designed to measure the intellectual ability of children between the ages of 6 and 16.

Intelligence

Relates to the capacity for learning, understanding, problem-solving, and adapting to new situations.

Developmentally Disabled Adults

Individuals over the age of 18 who experience significant limitations in intellectual functioning and adaptive behavior, impacting their daily life and activities.