You are the operations manager at your firm. Due to a pre-existing contract, you have the opportunity

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You are the operations manager at your firm. Due to a pre-existing contract, you have the opportunity to acquire 200 barrels of oil and 3000 pounds of copper for a total of $25,000. The current market price of oil is $90 per barrel and for copper is $3.50 per pound. You are not sure that you need all the oil and copper, so you are wondering whether you should take this opportunity. How valuable is it? Would your decision change if you believed the value of oil or copper would plummet over the next month?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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