A chemical company spent $530,000 to produce 152,000 gallons of a chemical that can be sold for $4.80 per gallon. This chemical can be further processed into a weed killer that can be sold for $8.20 per gallon. It will cost $270,000 to proces the chemical into the weed killer. Which of the following is true? O A. If the company decides to process further, it will decrease operating income by $1,246,400. O B. If the company decides to process further, it will increase operating income by $246,800. Oc. To maximize operating income, the company should continue to sell the chemical as is. O D. If the company decides to process further, it will increase operating income by $446,400.

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A: Net Present Value It is the method under which cash inflows that are received during the lifetime…

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A: Present Worth of in-house treatment=Present worth of the uniform annuity + present worth of the…

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A: The most important factor while deciding to choose between two available alternatives is relevant…

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Q: Garcia Company has 10,000 units of its product that were produced last year at a total cost of…

A: Relevant and Sunk Costs: Relevant costs are those costs in any managerial decision-making process…

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A: The joint cost is the cost whose expenditure is for two or more products. In the joint cost, it is…

Q: A chemical company spent $531,000 to produce 151,000 gallons of a chemical that can be sold for…

A: Formula: Increase in Net operating income = Increase in Revenue - increase in Processing costs.…

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A: It is required to compare the present value of the cost of both the options. The refinery should…

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A: Answer : Internal rate of return = 16.99%

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Q: quickly

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A: Given information: Salvage value is $5,000 Tax rate is 40% Additional working capital is $3,000

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.