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Problem:
It is well documented that commodity prices are very volatile when compared to other asset classes. Discuss factors that cause volatility in the commodity markets.
Additional Information:
This question is basically belongs to the Finance as well as it discusses about commodity prices being volatile when compared to other asset classes. This volatility has been stated in the solution.
10. What is the minimum cash flow that could be received at the end of year three to make the following project "acceptable?" Initial cost = $100,000; cash flows at end of years one and two = $35,000; opportunity cost of capital = 10%.
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