What is maximum price shockers company should bid for pgp

Assignment Help Business Economics

Reference no: EM13149262

The Shockers Company is considering making a bid to buy Pacific Gulf Petroleum (PGP) Company. PGP has several oil wells producing 200,000 barrels per month. It is expected that the oil production will increase 2% per month for the next 3 years. The price of oil is $50 per barrel for 3 years and is not expected to change. The operating expenses are $10 million per month and are expected to decrease by $100,000 each month. The company’s MARR is 24% per year, compounded monthly. What is the maximum price Shockers Company should bid for PGP?

Reference no: EM13149262

Questions Cloud

How much heat is absorbed : How much heat is absorbed when 28 grams of H2O is converted into steam at 100 degrees C?

What makes yahoo an attractive opportunity : Identify the major risks in each of these categories: technology, market, team, and financial. Rank order them and what are the advantages and disadvantages of each of the funding options they could pursue? Which one do you recommend?

What is the chance that their fourth child : if two parents are carriers of albinism, what is the chance that their fourth child will have a homozygous genotype ?

Describe the properties of carbon : Describe the properties of carbon that give this atom the unparalleled ability to form large, complex and diverse molecules.

What is maximum price shockers company should bid for pgp : The company’s MARR is 24% per year, compounded monthly. What is the maximum price Shockers Company should bid for PGP?

The monopolist charges a single price for output : The monopolist charges a single price for output, how much will he produce, what price will he charge, and what profit will he earn?

Where sd and dd are the domestic supply : Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be

What will be the value of the lost revenue : what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?

Predict the proportion of gamete types from the testcros : In maize the genes Pl for purple leaves (dominant over green leaves); sm for salmon silk ( recessive for yellow silk) and py for pigmy plant (recessive to normal size) are on chromosome 6 at positions 45, 55 and 65 respectively. Predict the propor..

User Account

All Pages