What is the value of opportunity

Assignment Help Finance Basics
Reference no: EM132460215

Diwali Airlines has a contract that gives them the opportunity to purchase up to 7,000,000 gallons of jet fuel at $4.00 per gallon. The current market price of jet fuel is $4.33 per gallon. Divali believes they will only need 4,000,000 gallons of jet fuel. What is the value of this? opportunity?

Reference no: EM132460215

Questions Cloud

What is meghan net unearned income for 2019 : Meghan had expenses of $950 related to producing the interest income. What is Meghan's net unearned income for 2019?
Determine the optimal leverage of private equity : Determine the optimal leverage of private equity owned companies? Do Private equity firms value when they divest their investment?
What are the tax consequences of the sale of the rights : What are the tax consequences of the sale of the rights? Assuming that Thomas does not allocate his original stock basis to the rights
How much is taxed to jordan at trust tax rates : Jordan, age 14, has $2,500 in interest and dividends and earned income from a part time job of $12,550. How much is taxed to Jordan at trust tax rates?
What is the value of opportunity : Divali believes they will only need 4,000,000 gallons of jet fuel. What is the value of this? opportunity?
What are the monthly payments on the loan : In order to purchase another truck, Beatty Transport obtained a $50,000 term loan for 5 years at 7.8% compounded semiannually.
Determine the annual break-even point in units : Compute operating leverage for each alternative at a volume of 270,000 units. Round your answers two decimal places,Determine annual break-even point in units
List the cash flows for bond : Suppose the U.S. Treasury issued 2 year, 2.5% bonds on October 15, 2019. The face value is paid at maturity (10/15/2021).
Company annual sales and dso : If the cost of goods sold equaled 80 percent of sales, what were the company's annual sales and DSO?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why do researchers use inferential statistics

When analyzing data, why do researchers test the null hypothesis rather than the experimental hypothesis?

  Review of an annual report of publicly held company

Review an annual report of a publicly held company (annualreports.com and the company's own website, as a minimum).  Based on the letter to shareholders, the MD&A, and key financial statements, summarize your findings about the company.

  What is the firm return on equity

Company A has a total asset turnover ratio of .6, a profit margin of 6.2 percent, and a debt-equity ratio of 0.40. What is the firm's return on equity?

  The company''s balance sheet and income statement

What are the company's total assets at the end of its most recent annual reporting period? Why is this important. What are the total assets at the end of the previous annual reporting period

  What strategy should the beef producer follow explain

The variance of monthly changes in the spot price of live cattle is (in cents per pound) 1.5. The variance of monthly changes in the futures price.

  Find the net book value for the lighting rig

A not-for-profit opera company purchased a new lighting rig for $275,000 exactly two years ago. The lighting rig is expected to have a useful life of 10 years.

  Discuss the several statement of internal controls

The components of internal control are built on the foundation of the ethical tone set by top management.

  Which strategy works best if a bidding war erupts

If you were Smith's financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

  Is the rationale for why plant assets are not reported at

presented below are the assumptions and principles discussed in this chapter.1. full disclosure principle2. going

  Discuss the difference between absolut purchasing power

Discuss the difference between absolut purchasing power parity and relative purchaing power parity. Please write a minimum of three paragraphs answering the question above. Please also give an example that supports your answer. If you use any ou..

  Why do children with dyslexia struggle with comprehension

As a teacher what are some ways to differentiate instruction for dyslexia students? Why do children with dyslexia struggle with comprehension of text?

  What is the best criterion to evaluate a project

What is the best criterion to evaluate a project, and why? What other methods are used to evaluate project worthiness and how is the best criterion better than

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!

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