Escalating worldwide demand for corn has led to a sharp increase in the market price of corn, and corn prices are likely to remain high. corn is extensive used as feed for livestock, and because profit margins are tight in the livestock business, many farmers are expected to leave the business. with fewer suppliers, meat prices will surely rise. nonetheless, observers expect an immediate short-term decrease in meat prices. which of the following, if true, most to justify the observers’ expectation? (a) the increase in corn prices is due more to a decline in the supply of corn than to a growth in demand for it.(b) generally, farmers who are squeezed out of the livestock business send their livestock to market much earlier than they otherwise would.(c) some people who ate meat regularly in the past are converting to diets that include little or no meat.(d) as meat prices rise, the number of livestock producers is likely to rise again.(e) livestock producers who stay in the business will start using feed other than corn more extensively than they did in the past.

If you want to compare two different investments, what should you calculate

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

Colter steel has $5,550,000 in assets. temporary current assets $ 3,100,000 permanent current assets 1,605,000 fixed assets 845,000 total assets $ 5,550,000 assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 2 percentage points lower than short-term rates. earnings before interest and taxes are $1,170,000. the tax rate is 40 percent earnings after taxes = ?