User Account

All Pages

Price of methanol affect the choice between the two methods

Assignment Help Finance Basics
Reference no: EM132364845

Japanese researchers compared various methods, using different catalysts and processes, to produce fatty acid methyl ester (FAME) from waste cooking oil at a scale of 7269 tons a year. With the CaO-D method, the average fixed cost is $232 per ton and average variable cost is $391 per ton (including the cost of 3226 kilograms of methanol). With the KOH-D method, the average fixed cost is $225 per ton and average variable cost of $416 per ton (including the cost of 3970 kilograms of methanol).

a) The price of FAME will fluctuate in the future according to demand and supply. Which method has the lower break-even price in the: (i) short run, (ii) long run?

b) You are setting up a factory to produce FAME, which method would you choose, CaO-D or KOH-D based on NPV calculations?

c) How would an increase in the price of methanol affect the choice between the two methods?

Reference no: EM132364845

Questions Cloud

Draw a money supply-money demand graph : Draw a money supply/money demand graph that illustrates the situation.
Knowledge of the theory of market structure : Drawing on your knowledge of the theory of market structure - supplemented by appropriate media reports - comment on the statement of ACCC Chairman
What you learned about elasticity and taxes : Using what you learned about elasticity and taxes in this this week's readings, evaluate that statement.
Develop a plan of how to build and maintain team : The city manager has asked that you develop a plan of how to build and maintain your team.
Price of methanol affect the choice between the two methods : How would an increase in the price of methanol affect the choice between the two methods?
Rewrite the production function in terms of capital-labor : Rewrite the production function in terms of the capital-labor ratio (s). (d) Assume that ß = 1-a. Show that Euler's theorem holds for this production function
Find the marginal product of capital : Consider the following production function y = F(K, L) = TKaL ß where K and L represent capital and labor inputs respectively.
Find the value function : (a) Denote by ? the lagrange multiplier. Write down the lagrangian function and find the optimal values (x * 1 (m), x * 2 (m), ? * (m)).
Ricardian economy produces two goods : Assume that a Ricardian economy produces two goods: corn and wheat, using only labour. This economy produces 0.5 ton of corn or 1 ton of wheat

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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