User Account

All Pages

What is the maximum capital cost

Assignment Help Microeconomics
Reference no: EM13506042

What is the (incremental) NPV of this investment in conversion capacity?  

  1. What is the maximum capital cost of the conversion unit for which a refiner should proceed with the investment?
  2. Reset to base values. Change the price delta for Jet Fuel & Kerosene from ($5) to zero. What is the maximum viable capital cost now?
  3. What does this tell you about the significance of estimating future product prices?
  4. Reset to base values. Now put in the distillation product yields (column J) for heavy crude as given in question 2. Also enter the price of heavy crude you calculated in question 2. What is the maximum viable capital cost now?
  5. What does this tell you about the refiner's choice of crude type given an investment in conversion capacity?
  6. Reset to base values. Now enter the distillation product yields for light crude as given in question 5. Also put in the price of heavy crude you calculated in question 5. What is the maximum viable capital cost now?
  7. Given this analysis, what can you say about how future expectations of light versus heavy crude supply might affect refiner investment decisions? 
  8. In a real investment decision like this, there are many uncertainties.  What inputs to this model should properly be considered uncertainties if you were contemplating doing a risk analysis?

Verified Expert

Reference no: EM13506042

Questions Cloud

What other groups also experience marginality : Marginality describes the status of living in two distinct cultures simultaneously. How can some Jewish Americans experience marginality? Provide one specific example. What other groups also experience marginality?
Determine the profit : Webster Training Service (WTS) provides instruction on the use of computer software for the employess of its corporate clients. It offers courses In the client's offices on the client's equipment.
Types of job performance management techniques : Discuss briefly on the four types of job performance management techniques
What was vopats march retail sales subject to sales tax : on April 10th Vopat remitted $135,800 tax to the state tax division for March retail sales. What was Vopat's March retail sales subject to sales tax?
What is the maximum capital cost : What is the maximum capital cost of the conversion unit for which a refiner should proceed with the investment and what does this tell you about the significance of estimating future product prices?
Estimate the magnitude of the tangential acceleration : A flywheel with a radius of 0.700m starts from rest and accelerates with a constant angular acceleration of 0.900rad/s^2. Compute the magnitude of the tangential acceleration of a point on its rim at the start
Compare with other religious groups : How are Arab Americans portrayed in American film and television? Provide one specific example. How does this compare with other ethnic American groups? How are Muslims portrayed in American film and television? Provide one specific example. How d..
What is the maximum altitude the rocket reaches : In an experiment in physics class, a model solid-fueled rocket is fired vertically with an acceleration of 3 m/sec2 for 6 seconds. After that time, What is the maximum altitude the rocket reaches
Find the speed of the faster car relative to the slower car : A certain automobile can decelerate at |a1| = 1.6 m/s2. Traveling at a constant v1 = 29 m/s, this car comes up behind a car traveling at a constant v2 = 4 m/s. What is the speed of the faster car relative to the slower car

Reviews

Write a Review

Microeconomics Questions & Answers

  Critics of the minimum wage

Critics of the minimum wage discuss that as an antipoverty device it is "poorly targeted." By this they mean that:

  Find equilibrium price and quantity and describe its

for this assignment choose a major publicly traded automotive producer such as general motors ford toyota or

  Social responsibility of business is to increase profits

The Social Responsibility of Business Is to Increase its Profits

  Explain scarcity and opportunity cost how are the economic

1. define scarcity and opportunity cost. how are these economic concepts related? what role do they play in the making

  If government did perform expansionary fiscal policy to

suppose for a closed economy no import or export the autonomous consumption ac 500 mpc0.9 and suppose that the

  Problem 1 suppose the market for oil is characterized by

problem 1. suppose the market for oil is characterized by the demand p 7 - q where q is the total quantity supplied

  Under what situations are consumers better off besides

coffee prices in 1960 were .40 cents and are 1.65 in 2009. income in 1960 was 10000 and are 40000 in 2009. does this

  Find out the marginal factor cost function find out the

consider the following short run-production function where lvariable input

  What happens to consumer surplus

What happens to consumer surplus and what happens to total surplus assuming the government sells the consumer

  Assume you describe the concept of the inflation tax to a

write a 700-1000 word paper in which you address the questions below. also do your best to format your work

  Prepare a two- to three-page paper in apa style sixth

prepare a two- to three-page paper in apa style sixth edition format that describes explains addresses and answers the

  Distinguish between long-run and short-run profits

Does this case illustrate the law of diminishing marginal productivity and in this case, less and less of a single factor, labor, is being used. Does this have anything to do with the law of diminishing marginal utility?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd