A company decides to close down its plastics division. It has on hand 20 tons of styrene monomer, a raw material that has a market price of $800 per ton, which had been originally purchased at $750 per ton. Given that the company has no use for the styrene monomer, and that it would cost the company $5200 to store it, what is the total, value of the 20 tons of styrene monomer to the company? -$5200 $0 $15,000 $16,000 A firm has contracted to supply 500,000 gallons of propane fuel for $1.46 million to the local municipality. The municipality wants to break the contract. What does the minimum current market price of propane need to be in order for the firm to benefit from breaking the contract? greater than $2.90 per gallon greater than $2.92 per gallon greater than $2.94 per gallon greater than $2.96 per gallon Which of the following best describes the valuation principle? It is not possible to compare casts and benefits that occur at different points in time, in different currencies, or with different risks. The value of a commodity or an asset to a firm or its investors is determined by its competitive market price. When the value of the benefits exceeds the value of the costs in terms of market prices, the decision will increase the market value of the firm. The rate at which we can exchange money today for money in the future by borrowing or investing is the current market interest rate and is same across all banks. If equivalent goods or securities trade simultaneously in different markets across the world, they will trade for the same price. Like other metals, uranium 308 is traded in competitive markets like the New York Metals Exchange. Which of the following would value a given weight of uranium 308 the most? a power station that uses uranium 308 to produce electrical energy a metals trader who stockpiles and sells actual physical quantities of uranium 308 a speculator who buys and sells uranium 308 on the market without ever using the metal All buyers and sellers would have the same value for 250 pounds of uranium 308. A 2013 Toyota Camry can be bought in Buffalo, NY, for $18, 620. The same model Camry can be purchased across the Canadian border in Hamilton, ON. If cars could be freely traded across the border, what would be the expected price of a 2013 Toyota Camry in Hamilton in Canadian dollars, given that $1 U.S. is equal to $0.92 Canadian? $17, 130 $24, 287 $20, 239 $28, 335